EUR/USD
The EUR/USD pair rose during the course of the day on Friday, but gave back most of the gains in order to form a bit of a shooting star. That being the case, the market looks as if it isn’t quite ready to continue going higher yet. If we can break above the top of the range for the Friday session, I feel that we will then reach towards the 1.14 handle, but I also see quite a bit of support below, so having said that it’s difficult to sell this market. If we break down, more than likely we will continue to go down to the 1.12 level, and possibly even lower than that. However, there is so much in the way of support and noise below that I feel it’s just simply easier to buy this pair on the breakout.
GBP/USD
The GBP/USD pair rose during the day on Friday, as we broke towards the 1.4250 level. We broke above the top of the hammer from the Thursday session which of course is a very positive sign, but ultimately it appears that the market is simply just tightening up as we cannot make any real decision. With this, it’s probably only a matter of time before we see ourselves bouncing around and therefore I feel that the volatility is going to be far too strong to ask look at any real money to work in this market. At this point in time, believe that the British pound should just simply be avoided against the US dollar, as we have far too much in the way of confusion obviously. Remember, we have the Federal Reserve on one side of the Atlantic looking less and less hawkish, while the United Kingdom debates on whether or not it wants to leave the European Union. That of course is bad for the British pound, so this point in time this is a fight between 2 very weak currencies.
