The focus for the upcoming week will centre around GBP, with the other pairs taking a backseat.
UK Prime Minister Theresa May is expected to kick start the United Kingdom’s departure from the European Union.
It will happen on 29 Mar and I’m expecting spreads to be widened more than usual and GBP-related pairs to be highly volatile – perhaps why GBP/JPY has yet to make a clear directional push, being extremely choppy.
No clear bias from me, just another wait-and-see situation.
The DXY is still trapped within the 99-100 zone, with declining or less-significant movement for the USD-related pairs over the past week.
Trading USD-pairs should be tricky again for this week.
I’m still biased towards a break of the textbook head and shoulders neckline overall.
JPY-pairs are currently making a recovery after being pummeled pretty badly through the past week, with USD/JPY leading the way with a convincing superficial rejection of 110.6 area.
I am expecting the recovery across the JPY-pairs to be short-lived before it gets punched back down again.
Overall sentiment is very bearish for me.
As for EUR-pairs, not much comment on it, except that the EUR bulls have run its course and its about time it retreated a little.
On the financial newsfront, not much going on except for the Brexit-launch on 29 Mar.
Meanwhile, keep your risk in check and trade safe.