EUR/BRL News and Charts for August 12, 2019

The pair failed to breakout from a key resistance line, which will send the pair lower towards a major support line. Unpredictability was seen to be playing its game on the EU-Mercosur trade negotiations. The 20 years negotiation between the European Union and Brazil had finally come into an end after the two (2) economies agreed to draft deal which will open the market of the largest trading bloc in the world and the largest trading bloc in South America. However, negotiations to finalize the deal was still rough as the election of Brazilian President Jair Bolsonaro had caused Brazil’s deforestation to soar, an event that violates the agreed terms between the two (2) economies. Aside from this, Bolsonaro, also dubbed as “South America’s Trump”, had inherited U.S. President Donald Trump’s eccentric attitude after he cancelled a meeting with French Foreign Minister Jean-Yves Le Drian for a haircut.