Monday 22nd October – Weekly technical outlook and review.
This article is originally referred from IC Markets News.
A combination of higher US Treasury yields, ongoing US-global trade issues and relative weakness in counterpart currencies strengthened the greenback in recent trade, concluding the week +0.43%.
Although the buck managed to pare recent losses over the course of last week, traders might want to note the unit failed to breach its previous high 96.16.
Technically speaking, though, higher-timeframe flow remains positioned above monthly supply at 95.13-92.75, potentially setting the stage for an eventual run towards resistance at 99.62.
USD strength weighed on the single currency last week, wrapping up trade -0.39%.
Adding to the euro’s woes, price was affected by the Italian budget situation, though managed to reclaim a portion of lost ground at the closing stages of the week as the EU struck a positive tone on Italy.
From a technical perspective, EUR/USD weekly price remains toying with the top edge of demand at 1.1312-1.1445, as well as daily action seen testing support drawn at 1.1462.
The British pound, although began the week optimistically with upbeat average earnings, crumbled mid-week as lower-than-expected CPI and a hefty retail sales miss weighed on market sentiment.
By and large, though, Brexit seized the bulk of the headlines last week after weekend talks ahead of the EU summit broke down.
The lack of progress in Brexit negotiations throughout the week and talks now turning to possibly extending the transition in an effort to resolve outstanding issues, places the pound in uncertain territory.
The technical picture positions the GBP/USD at weekly support coming in from 1.3047, along with price also seen testing a daily trend line support (extended from the low 1.2661).
For a more in-depth market view of the overall technical picture, feel free to check out IC Markets’ comprehensive weekly briefing.
Original Source: IC Markets News