Forex Signals Brief for Mar 13: Brexit Troubles Weigh on Markets
Rowan Crosby • 2 min read
All the focus this week has really been on the Brexit deal and how the UK parliament was going to react.
It wasn’t surprising to see this deal get shot down after the thumping the first deal took in January. However, now as the March 29 deadline closes in, it appears there is every chance the UK could well be left up the creek with no deal to speak of.
There will be more developments in the next 24 hours as PM May scrambles to try and put something in place, while at the same time giving the MPs the option of exiting with no deal.
On the data front the main data point of interest today will be US PPI. After CPI came in below expectations this will be keenly watched and certainly by the FOMC, who are already reeling from a host of weak data points.
Forex Signal Update
The FX Leaders Team finished with one winner from two trades as there was plenty of volatility but few good opportunities.
EUR/USD – Active Signal
We are back in another EUR/USD signal as the rally has gone on a bit further than we feel is sustainable. Three is also plenty of resistance at 1.1300 for protection.
DAX – Active Signal
The DAX has pulled back since it tested overhead resistance, but overall the trend is still up. Despite a few bumps, equities are still bullish for the time being are we are looking for another test of the highs here.
Bitcoin continues to remain trapped between $3,800 and the $4,000 level after two failed attempts to make new highs.
There is speculation that the number of shorts are increasing and that wouldn’t be surprising given how we have seen price respond around key resistance.
Until we lift $4,000 in any meaningful way, short interest will likely remain strong.