Could be looking at a MASSIVE FINANCIAL CRISIS following BREXIT: 'would be the end of the single market and the European project'.
In an interview with the German newspaper Frankfurter Allgemeine Zeitung, Mr Barnier said Mrs May's plans 'would be the end of the single market and the European project'. 'The British have a choice,' he said. 'They could stay in the single market, like Norway, which is also not a member of the EU - but they would then have to take over all the associated rules and contributions to European solidarity. It is your choice. 'But if we let the British pick the raisins out of our rules, that would have serious consequences. 'Then all sorts of other third countries could insist that we offer them the same benefits.'
On the last Friday’s session, the EURUSD fell with a wide range and close near the low of the day, in addition, managed to close below Thursday’s range, which suggests a strong bearish momentum.
The currency pair closed below the 10 and the 50-day moving averages, both should provide a dynamic resistance, nonetheless, it continues to trade below the 200-day moving averages that should provide dynamic resistance.
The key levels to watch: Daily resistance at 1.1753, a key level at 1.1684 (resistance), the 10-day moving average at 1.1634 (resistance), the 50-day moving average at 1.1605 (resistance), a daily support at 1.1555, other daily support at 1.1459.
The EURUSD attempted to push higher last week topped at 1.1733 but whipsawed to the downside and closed lower at 1.1607. Price broke below the trend line support as you can see on my H4 chart below suggests a bullish failure. The bias is bearish in nearest term especially if price able to move consistently below 1.1600 and the H4 EMA 200, testing 1.1550 – 1.1500 region. Immediate resistance is seen around 1.1650. A clear break and daily close back above that area could lead price to neutral zone in nearest term as direction would become unclear. My major technical outlook remains neutral.
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