Forex Market Analysis

Daily Market Update: Cancellation of the US-North Korea Summit, GB Second Estimate GDP


News Commentary

The market reacted to the news that U.S. President Donald Trump decided to cancel a planned summit with North Korean leader Kim Jong Un.


“I have decided to terminate the planned Summit in Singapore on June 12th. While many things can happen and a great opportunity lies ahead potentially, I believe that this is a tremendous setback for North Korea and indeed a setback for the world…”. Trump noted.

This came with The U.S. Commerce Department decision that it would apply a national security investigation into car and truck imports, a move that could lead to tariffs like those on steel and aluminium in March. This made traders nervous which was obvious on the markets, to avoid risk they relied on safe havens.

In Great Britain, there’s a second estimate on GDP at 8:30 GMT. The forecast is 0.1%. Any disappointing reading would pressure the Pound down deeper.

Chart Analysis



On the daily chart, the price had made its way into the resistance zone of 1.289-1.298.

With an approach from the descending trend line starting from the high of 2015.

If the daily candle closes beneath this zone again, it will prompt the price to be bearish to the support zone 1.2525-1.2415.


On the daily chart, the price had a false break beneath the support zone 0.75-0.7535.

That enhances the harmonic pattern AB=CD, with breaking a descending channel.

The pair had risen with an engulfing candle and pulled back with a hammer, one touching the support zone again.

Along with divergence in RSI, the price is ready for the next move up to 0.774 which is a level with a combination of the lower trend line from the high of 2018 & the broken uptrend.



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