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Sterling is knocked down sharply after UK Attorney General Geoffrey Cox published is updated legal advice up the new Brexit deal agreed by UK Prime Minister Theresa May and European Commission President Jean-Claude Juncker late Monday. In short, Cox said that he new documents "reduce the risk" the UK is trapped indefinitely in the Northern Ireland backstop. But such risk is not eliminated.

And most importantly, as Cox's letter concluded: "the legal risk remains unchanged that if through no such demonstrable failure to either party, but simply because of intractable differences, that situation does arise, the United Kingdom would have, at least while the fundamental circumstances remained the same, no internationally lawful means of exiting the Protocol's arrangements, save by agreement".

Legal Opinion on Joint Inst... by on Scribd

WTI oil futures jumped to a new one-and-a-half-month high of 57.43 earlier on Tuesday, remaining above the 23.6% Fibonacci retracement level of the upward movement from 51.60 to 57.85 around 56.37 and the 57.16 strong support level. The price has been trading in a narrow range within 55.00 – 57.85 over the last three weeks. However, technical indicators are holding in positive territory with the RSI flattening and the MACD strengthening its momentum.

A bullish rally could find immediate resistance at the 3-month high of 57.85 before touching the 58.15 barrier, taken from the highs on November 2018. More advances could drive WTI until 59.90 taken from the bottom on March 2018, shifting the neutral bias to bullish.

In case of a successful penetration to the downside of 57.16, oil prices would rest at the 23.6% Fibonacci of 56.37, which stands around the 20- and 40-simple moving averages (SMAs). A downside extension could push the price until the 38.2% Fibonacci of 55.45, while even lower, the price could penetrate the channel to the downside, creating a bearish tendency.

Overall, the short-term bias is in a bullish correction mode after the rebound from the 18-month low of 42.50, despite the very short-term neutral view.

The DAX has posted slight losses on Tuesday. Currently, the DAX is at 11,517, up 0.24% on the day. On the release front, there are no German or eurozone events. On Wednesday, the eurozone releases industrial production.

With no fundamentals out of Germany or the eurozone, much of the market focus is on the Brexit saga. Asian markets climbed on Tuesday, after Prime Minister May said she had secured “legally binding” changes to the withdrawal agreement, which will be brought before parliament later on Tuesday. However, the DAX was unable to consolidate the gains, and is in red territory in the European session.

May said that the changes would allow the U.K. to cancel the backstop arrangement over Ireland, but it’s questionable if this will be enough to sway Conservative MPs, many who fear that the backstop will prevent the U.K. from getting out of the European Union. If the vote on withdrawal is rejected by lawmakers, the next step is one on a no-deal Brexit, and the second on requesting the EU to extend Article 50 and delay Brexit past March 29. With the crucial vote(s) in parliament looming, traders should be prepared for stronger movement from the DAX during the week.

The German manufacturing sector continues to post dismal numbers. Industrial production fell 0.8% in January, missing expectations. The indicator managed only two gains in the second half of 2018 and has started 2019 with a decline. Last week, factory orders plunged 2.6%, marking a third successive decline. The U.S-China trade war has dampened global growth, which has reduced the demand for German exports and weighed heavily on manufacturing activity. Eurozone manufacturing has also struggled, and the negative trend is likely to continue if there is no breakthrough in the U.S-China trade talks.

The Great British Pound depreciated about 314 base points against the Canadian Dollar during the previous week trading session. The decline was stopped by the 100-hour simple moving average at 1.7400.

The 100-hour SMA guided the exchange rate towards a psychological resistance level at 1.7800 during Monday's trading session.

By and large, it is likely that the currency pair edges lower towards a support level formed by the weekly pivot point at 1.7560 during the following trading sessions.

However, technical indicators demonstrate that bulls could continue to push the currency exchange rate higher within this week's trading sessions.

During last week's trading session, the Pound Sterling depreciated about 2.05% against the Australian Dollar. However, the currency pair maintained the medium-term ascending channel pattern.

The exchange rate bounced off a support level formed by the monthly pivot point at 1.8432 during yesterday's trading session.

Everything being equal, it is likely that the currency exchange rate will aim for the upper boundary of the medium-term ascending channel pattern at 1.8995 during the following trading days.

Meanwhile, technical indicators flash buy signals on both the daily and the weekly time frames chart.

The single European currency appreciated about 100 base points against the Japanese Yen on Monday. The currency pair breached both the 50– and 100-hour SMAs during yesterday's trading session.

Today's trading session began with bullish momentum. And by the middle of the day, a breakout has occurred through the upper end of a junior descending channel pattern at 125.40.

Given that a breakout has occurred, it is likely that the currency exchange rate will aim for a swing high of 126.42 within this session.

However, a resistance level formed by the monthly pivot point at 125.91 could hinder such movement.

Upside risks prevailed in the market on Monday, thus sending the Australian Dollar to surged about 0.75% in values against the US Dollar. The currency pair breached some significant resistance levels during yesterday's session.

The exchange rate revealed a new junior ascending channel pattern during the first half of today's trading session. Currently, the channel pattern is guiding the AUD/USD pair towards a swing high of 0.7092.

Everything being equal, it is likely that the currency exchange rate maintains the junior ascending channel pattern within this session.

Although, technical indicators suggest that a decline should be expected during the following trading session.

During yesterday's trading session, the European Single Currency appreciated against the US Dollar to trade at 1.1200 level as it was expected! On Tuesday morning, the rate was located between the 100-hour and the 200-hour simple moving averages at the 1.1272 mark.

In regards to the near-term future, most likely, the currency exchange rate will be trading at the 1.1250 level to stay between the monthly S1 at 1.1240 and the weekly pivot point at 1.1265.

However, the 100-hour SMA might help the European Single Currency to break the resistance of the 200-hour SMA during today's US Consumer Price Index and Core Consumer Price Index data release at 12:30 GMT to surge to 1.1300.

During the previous trading session, the British Pound skyrocketed to 1.3250 breaking most of the technical indicators. On Tuesday morning, the currency exchange rate was depreciating towards the previously drawn pattern line to be located at the 1.3147 mark.

It is expected that the 100-hour simple moving average and together with the monthly pivot point support level will push the rate towards the 1.3200 level.

On the other hand, today's US Consumer Price Index and Core Consumer Price Index data release at 12:30 GMT might depreciate British Pound against the US Dollar to push the rate to return to the previously drawn pattern at 1.3000.

The US Dollar depreciated about 51 base points against the Canadian Dollar on Monday. The currency pair was pressure by the combination of the 50– and 100-hour SMAs during the previous session.

The exchange rate is currently trading near the lower boundary of an ascending channel pattern at 1.3401.

If the support level formed by the lower band of the channel pattern holds, a surge towards the monthly R2 at 1.3436 could be expected.

However, if the currency exchange rate passes the ascending channel pattern, the next target for bearish traders will be near the 200-hour SMA at 1.3340.