The euro cross near-term technical outlook has not changed since a week. In terms of UK data, the economic calendar is relatively quiet.

Data review:

  • February UK services PMI climbs to 54.5 from 53.0
  • UK industrial production grows by 1.3% in January

Data preview:

This week’s economic calendar is relatively quiet and we believe the GBP will be driven by broader risk sentiment.

TECHNICAL VIEW

The euro cross near term technical outlook has not changed since a week. The cross was rejected at the higher end of the symmetrical triangle on March 07. As a result, the price drifted for four-consecutive days and re-tested the 100MA on Monday.

The daily RSI is propelling down and oscillator study has changed to bearish. Based on these we forecast the euro will remain sideways this week as well.

Last week’s bullish neckline acting as an initial resistance seems at 0.8920 above this 0.8970 March 07 high, exists. Last week the euro cross posted an inverse H&S pattern. Based on the bullish pattern supports can be found between 0.8800 and 0.8770.

View: Minor consolidation is likely

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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