EUR/USD
The EUR/USD pair went back and forth during the course of the day on Thursday, showing quite a bit of volatility. At the end of the day though, we essentially decided nothing and therefore I believe at this point in time the market is still probably one that your best to leave alone. Because of this, it’s likely that I will be on the sidelines for quite a while, but it impulsive candle could change my opinion. At this point, it seems like we are basically hugging the 1.1250 level, and therefore I think that altar short-term traders might be able to buy and sell if we get a little bit too far from that level, but at this point in time I still believe that there are easier currency pairs out there to trade.
GBP/USD
The British pound fell during the day on Thursday, but did find a bit of support at the 1.32 level. Because of this, I think that we are going to grind lower, not necessarily breakdown. However, we are most certainly in a downtrend, and I think that the market will continue to see bearish pressure from time to time, so even if we rally at this point in time, I believe it’s only a matter of time before the sellers get involved. An exhaustive candle would be a reason enough to sell, and I believe that the 1.35 level above continues to be the massive barrier that keeps this market lower. The gap above the 1.35 level continues to be very influential on this market, so it’s not until we break above that gap that I would consider buying.
At this point in time, it’s likely that we will see continued back and forth trading, and then eventually some type of negative move, perhaps as low as 1.2850 on the breakdown.
