GBP Jumps As EU Agrees To Extend Brexit Until May

Intraday Technical Analysis 25 March

0 111

The EU leaders agreed to the UK’s request to extend Brexit from March 29th to May 22nd if the UK parliament will adopt the Brexit bill this week. PM May initially sought an extension until June 30. Failure by the UK parliament to adopt the Brexit bill this week would, however, mean that the UK will have to leave the EU by April 12th.

Join our responsible trading community - Open your Orbex account now! 

Euro Slips for the Second Consecutive Day

The euro currency fell 0.63% on Friday to settle at $1.1300. German manufacturing report fell for the third month in a row with the PMI indicating that activity eased to 51.5, the lowest on record since June 2013. Services sector eased to 54.9 compared to 55.3 in February.

Will EUR/USD Continue to Trade Sideways?

The common currency extended declines for two consecutive days as price slipped back to test the $1.1300 level. Price slipped to $1.1279, which marks a 61.8% Fibonacci retracement of the recent gains from 8th March lows of $1.1742 to 20th March highs of $1.1447. A reversal off the current level will see the EURUSD retesting the resistance at $1.1329. A breakout above this level will likely shift the bias to the upside in the near term.

Yen Rises on Safe Haven Bid

As investors continued to rush into safe haven assets, the yen was seen rising 0.85% on the day by Friday’s close. The market sentiment remains cautious amid a mix of global narratives and monetary policy. Fed member, Bostic, in a speech on Friday said that the next move from the Fed could be either a rate hike or a rate cut. Economic data from the U.S. was somewhat mixed.

Will USD/JPY Reverse at Support?

The Japanese yen was trading stronger pushing USD/JPY to test the support level of 109.84. The decline to this level marks a retest of the support level. We expect to see the currency pair reverse off this level as indicated by the Stochastics oscillator. A reversal could potentially put the USD/JPY currency pair on track to retest the newly established resistance level of 111.40.

Gold Recovers as US Treasuries Invert

Investors bid up gold prices on Friday as the precious metal was seen recovering from the declines from the day before. The market sentiment soured as the spreads between the short (3-Month) and long term (10-year) treasuries inverted once again, raising concerns of a recession.

Will XAUSD Continue Higher?

XAUUSD has been inching higher over the past few days. However, the momentum is weakening. The current gains are expected to stall near the highs of 1323. As long as the resistance level holds, the gains are likely to reverse near this point. This opens the bias to the downside, with the support at 1285 being key. A break down below this level will push gold prices lower.



or practice on DEMO ACCOUNT

Trading CFDs Involves high risk of loss

Leave A Reply

Your email address will not be published.