EUR/USD
The EUR/USD pair had a volatile session on Thursday, as we went back and forth. The final candle was a bit of a shooting star, and the market is starting to make a shooting star for the weekly candle. What I find interesting is that the weekly chart is pressing up against the 1.15 level above, which is massively resistive. That is the top of the last 3 years for market trading, meaning that there is a significant amount of bearish pressure in this area. Because of this, if we break above the 1.1550 level, then I feel that the pair will go much higher. Alternately, if we roll over from here, then there is no reason to think that anything will have changed, and several months down the road we may find ourselves at the 1.05 handle.
GBP/USD
The British pound rallied during the day, reaching towards the 1.2940 level. I do see a significant amount of resistance just above at the 1.30 level, and then the top of that range at the 1.3050 level. It’s not until we break above there that I am comfortable buying now because we are getting a little bit stretched. On and exhaustive candle, I am willing to sell, or a close above the 1.3050 level, I’m willing to buy. Until then, I think it’s probably a good time to sit on the sidelines and wait for the market to show a bit more clarity. As things stand now, it still looks as if we are trying to consolidate between the 1.30 level on the top and the 1.28 level on the bottom. Volatility will continue to be a mainstay of this pair though, because of the headlines coming out of politicians from both London and Brussels.
