Source: Forex Analysis
Big picture: Investors not annoyed about Brexit
The British parliament voted for a Brexit delay by a wide margin that is 400 vs. 200. So far, a delay of three months has been approved. Premier Theresa May will make another attempt to make an agreement with the EU Parliament until March 20. However, if a new deal is not settled by that date that is almost guaranteed, the UK departure will be postponed for a very long time.
So, the vote for the Brexit delay has calmed markets down as this matter is not so urgent any more.
The US provided a batch of macroeconomic data which clearly indicates that the domestic economy is losing momentum, but the downturn is not severe. On the whole, the US economy has proved its health in the 10-year period of growth without a crisis.
The US Federal Reserve is holding a policy meeting on Wednesday next week on March 20. The market is anticipating that the Fed will confirm its dovish rhetoric.
EUR/USD: The pair is likely to escape out of a trading range and start a clear trend. At the moment, it looks like the pair will move upward.
We buy at the breakthrough of 1.1340.
Alternative: Sell from 1.1175.
The material has been provided by InstaForex Company – www.instaforex.com