EUR/USD
The EUR/USD pair initially fell during the day on Monday but as you can see turned right back around to form a bit of a hammer. The 1.12 level offers support, and if we can break above the top of that hammer, it’s very likely that the market will continue to go higher, perhaps try to reach towards the 1.13 level, and then eventually the 1.14 handle. On the other hand, if we break down below the bottom of the hammer from the session on Monday, it’s very likely that the market could reach down to the 1.11 handle, and then perhaps the 1.10 level after that. Because of this, I do expect some type of short-term move to come soon, but we simply have to wait to see which direction we break.
GBP/USD
The British pound went back and forth during the day as I would anticipate it will do for the foreseeable future as we continue to wait to see what the citizens of the United Kingdom will do when it comes to voting on whether or not to be in the European Union. With this, the market will more than likely struggle to find any real direction, and will probably react to every poll that comes out of newspapers in Britain. With that being the case, it is difficult to trade this pair and I don’t necessarily recommend it. However, we can break above the top of the candle from the session on Monday, it could be a short-term buying opportunity. A break down below the bottom of the range from the Monday session could be a selling opportunity. However, these are going to be very short-term trades, and with this being the case it is only for those of you can sit at your computer and watch the trade. For myself, I will be waiting for a swing trade signal, which of course we don’t have yet.
