EUR/USD and GBP/USD Forecast

10 January 2017 8:41:14 AM

By: DailyForex.com

EUR/USD

The Euro rallied on Monday, after initially dropping down to the 1.05 level. This is an area that is massively supportive, and with that being the case I think that the market is going to continue to consolidate in general. The 1.07 level above should be a resistive level, and essentially a “ceiling.” Ultimately, I want to see some type of exhaustive candles I can start selling yet again. Underneath, I believe that sellers are waiting to get involved if we drop below the 1.05 level as well. Longer-term, I believe that the Euro drops as the US dollar continues to have support due to the fact that interest-rate hikes are coming. The ECB has recently extended quantitative easing on the other side of that equation.

EURUSD

GBP/USD

The British pound fell on Monday, making a fresh, new low. The market found a bit of support at the 1.21 level below, and bounced slightly. I believe that it’s only matter time before the sellers get involved though, and exhaustive candles will be used to get involved in what has been a relatively soft British pound in general. I think that we will reach to the 1.20 level underneath, and perhaps even longer than that. A break down below there should send this market to the 1.15 level which is a massive long-term support barrier that is seen on the monthly charts.

If we do rally, I believe it’s only a matter of time before the sellers get involved and start selling. I look for exhaustive candles on rallies to short the market on small moves. I think the 1.25 level been broken above could be a signal that were going to go in the opposite direction, but until we close above that level on a daily chart, I don’t think that there’s any way to buy the British pound.

GBPUSD

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

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