EUR/USD
The EUR/USD pair fell during the course of the day on Tuesday, testing the 1.12 level. There is an area that is supportive near that handle, and as a result it looks like the buyers will get involved sooner or later. I also believe that the Federal Reserve stepping away from the extremely hawkish stance that once held suggests that the market is going to continue to go higher. Ultimately, the market will probably try to reach the 1.13 level, and with that being the case it’s very likely that the buyers will continue to get involved.
Even if we fell from here, the 1.1050 level below is essentially the “floor” in this market. Any supportive candle between here and there could be a buying opportunity, and as a result I am essentially “buy only” when it comes to this pair.
GBP/USD
The GBP/USD pair fell significantly during the course of the day on Tuesday, testing the 1.42 level for support. The area below there and extending all the way down to the 1.40 level should continue to be an area where we could see supportive candles and of course would be a nice buying opportunity. I have no interest in selling this market now, although I do recognize that we will probably drop from here. With that being the case, I am very interested in going long once again an opportunity, but at this point in time I don’t see an opportunity to start buying. On top of that, the candle closed near the bottom of the range, and as a result it looks as if the downtrend will continue for the short-term. However, the question then becomes whether or not we can continue to fall from here? I do think we can but only for a short amount of time. Given enough time, buyers will return sooner or later and as a result I am simply waiting for that to happen.
