EUR/USD
The EUR/USD pair had a very negative Friday, making a fresh new low. However, I think that there is quite a bit of support just below, so at this point in time we could probably see a draft to the 1.10 level, but not much more than that. I think rallies at this point in time will be selling opportunities on signs of exhaustion, and as a result I have no interest whatsoever in buying, at least not until we get closer to the aforementioned 1.10 handle. In the meantime, expect a lot of volatility as this is a favorite of short-term traders, but it certainly looks as if the sellers are somewhat firmly in control at the moment as we prepare for a potential interest-rate hike during the month of June out of the Federal Reserve.
GBP/USD
The GBP/USD pair initially tried to rally during the course of the session on Friday, but turned right back around to form a somewhat negative candle. It looks as if we’re going to reach down towards the 1.45 handle, where I see a reasonable amount of support. I think that the market will continue to show quite a bit of volatility, and it will more than likely try to figure out a longer-term move. But in the meantime, it appears that we are going to bounce around as there is a pretty significant amount of support in that region. Keep in mind that we also have to watch the Federal Reserve in this pair as well, and of course we have to worry about the United Kingdom vote to exit the European Union or not. That of course will continue to move the British pound overall, so it makes sense that this pair would be a bit volatile.
I would stick to short-term charts, keep an eye on the 1.48 level on the top of the 1.45 level on the bottom. At this point though, it looks like the sellers are a little bit stronger than the buyers.
