EUR/USD
The EUR/USD pair did almost nothing during the day on Monday, as we continue to see softness when it comes to the Euro. Ultimately though, it looks as if the market is rolling over a bit so I believe that we will probably try to reach back towards the 1.10 level below. That is a massive support level though, so having said that I feel it is only a matter of time before the market not only test that area, but I do think we will more than likely break down below there. Rallies at this point in time I only have me selling the Euro, as it certainly looks like it is very difficult for the Euro to hang onto gains at this point in time. Ultimately, this is a market that is in a range, but I believe that the overall negativity continues to weigh upon the European Union in general.
GBP/USD
The GBP/USD pair initially tried to rally during the course of the session on Monday, but turned right back around to fall towards the 1.30 level. With this, it’s only a matter time before the market breaks down to test the 1.28 level below. If we break down below there, the market will more than likely continue to go lower, perhaps starting a little bit of a more long-term break down from here. Because of this, it’s only a matter of time before I not only sell but hang onto a selling opportunity, but with this I think that the market may bounce a couple of times before we finally break down. With this, I think it’s certainly a matter of time before you can sell rallies again and again with the overall weakness that the British pound should continue to suffer, due to the voting to leave the European Union in general.
