EUR/USD
The EUR/USD pair went back and forth during the day on Thursday as we continue to struggle with the 1.14 level. This is a market that has seen quite a bit of resistance, extending all the way to the 1.150 level. The Euro has been trying to break out to the upside but as you can see we have struggled quite a bit over the last week once we crossed the 1.14 level. A pullback from here will more than likely only attract more buyers as the Federal Reserve has step away from some of the interest-rate hikes that we could have seen this year. With this, I think that it’s only a matter of time for the Euro breaks out above the 1.15 level, which would signal a longer-term “buy-and-hold” type of move. I don’t really have any interest in shorting at the moment.
GBP/USD
The GBP/USD pair initially tried to rally during the day on Thursday but turned back around and fell from there. The market continues to have bearishness in it but I recognize that the 1.40 level below is massively supportive, and as a result I think that the buyers will return sooner or later. However, if we break down below that level that would be very negative for the British pound. I also recognize that if we can break above the top of the candle from the Wednesday session that was of course was a hammer, that would be bullish enough to have me start buying as I think we would simply return to the previous consolidation area that has been struck between the 1.40 level on the bottom and the 1.45 level on the top.
This will probably be a very bouncy market, as we have the aforementioned issues with interest-rate hikes out of the US, and of course all of the uncertainty when it comes to whether or not the United Kingdom is going to stay in the European Union. With that, I think it’s going to be short-term choppy range bound trading.
