EUR/USD
The EUR/USD pair broke higher during the course of the session on Wednesday, finally clearing the 1.1050 level which has been pretty significant resistance in the recent consolidation area. Ultimately, the markets look as if they are ready to continue going much higher now, and as a result it is very likely that the market will continue to go much higher, so with that being the case we are more than likely going to see buyers step back into this market every time we pullback. I don’t have any interest in shorting this market, and I also believe that a break above the top of the range for the day on Wednesday is reason enough to start going long as well. Ultimately, I don’t have any interest in trying to fight the breakout as I believe it will be pretty significant for the meantime.
GBP/USD
The GBP/USD pair also broke out during the course the day on Tuesday, and it looks as if the market is ready to continue going much higher. Pullbacks at this point in time should be supportive, and now that we broke above the 1.45 handle, and it looks as if we will try to reach the 1.48 level, and then perhaps the 1.50 level. Ultimately, this market does look like it’s ready to go much higher and the US dollar looks like it’s on the back foot all of a sudden. However, we also recognize that we have a lot out there to rattle the markets, so we could turn right back around. On top of that, we have the jobs number coming out on Friday and that of course is a very likely catalyst for the next move in one direction or the other.
The length of the candle is rather significant, so I would have to assume that there is going to be some follow-through to the upside. However, whether or not we have changed trends won’t be answered until we get above 1.50 or so.
