Forex Market Analysis

Daily Market Update: US- North Korea Summit, Italian Politics, and Negotiations of NAFTA


News Commentary




The news has featured that the U.S.-North Korea summit is back on track. North Korea and the US are starting the preparations for the June 12 summit between Kim Jong-un and Donald Trump.

Separately, Trump contacted the Japanese prime minister, Shinzo Abe. He “affirmed the shared imperative of achieving the complete and permanent dismantlement of North Korea’s nuclear, chemical, and biological weapons and ballistic missile programs,” The White House claimed. And they would meet before the Kim-Trump summit.

Meanwhile, the U.S. 10-Year Treasury Yield fell at the beginning of the week to a six-week low at 2.89%.

Japan’s unemployment rate remained stable at 2.5% but the jobs ratio moved lower from 1.6% to 1.59%.


The political situation in Italy also blocked investor’s risk appetite. Italian President Sergio Mattarella refused to accept the nomination of a euroskeptic finance minister, motivating the anti-establishment Five Star Movement and far-right League party to give up trying to form an administration.


Canadian Foreign Minister Chrystia will fly to Washington to continue the NAFTA negotiations on Tuesday and Wednesday. “we’ve said all along we are ready to go (to Washington) at any time.” Said her spokesman Adam Austen.



Chart Analysis



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

That enhances the AB=CD harmonic pattern, 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.



The price has reversed from a very strong short-selling area, rebounding from the key resistance level at 111.1 and the lower trend line from the high of 2015, also reversing from the top edge of the upward channel along with forming an AB=CD harmonic pattern with overbought on RSI.

The price has broken the key support level 110.05 along with the ascending channel.

So, the price is supposed to revisit the support level at 108.15.



On the daily chart, as we expected, the price reached the resistance zone at 84-84.35 affected by shaping a head & shoulders reversal pattern.

The price couldn’t break through this area to bounce back.

It could reach the support levels at 81.25-80.5 to pull back up again, as the pair is currently moving sideways.




On the daily chart, the price had made its way into the resistance zone of 1.289-1.298, also reaching near the key resistance at 1.309.

With an approach from the descending trend line starting from the high of 2015 and the upper edge of the horn pattern.

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




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