18
Mar
2019

Weekly Technical Outlook 18.Mar.2019

The British pound encountered volatile waters last week, concluding the session up 2.10%. Brexit was the principal driver, with Parliament kicking off a series of votes by rejecting PM May’s Withdrawal Agreement for a second time Tuesday, and precipitating votes on a no deal (also ruled out), and finally whether to extend Article 50 beyond March 29 on Thursday, which was approved. From a technical view, weekly supply at 1.3472-1.3204 remains in the fold, though may be fragile given the number of times this area has been tested since July 2018.

The Greenback, according to the US dollar index, wrapped up the week in negative territory, down 0.89%. The yield on the benchmark 10-year Treasury note also hit its lowest level since early January Friday as US government debt rates closed lower for a second consecutive week. This – coupled with the index fading weekly resistance around 97.70ish – the move lower eclipsed recent gains and positioned price action within striking distance of a monthly supply-turned support area at 95.13-92.75.

he euro also enjoyed a relatively successful week, reclaiming ECB-induced losses. Largely bolstered by a soft US dollar across the board, the single currency pencilled in a 0.82% gain vs. its US counterpart. Technically, recent buying overthrew the 1.31 handle which has thus far held as support. Weekly price trading from demand at 1.1119-1.1295 and daily flow displaying room to trade as far north as channel resistance (extended from the high 1.1569) suggests further buying could be in store this week.