EUR/USD
The EUR/USD pair rallied on Tuesday as we broke above the 1.09 handle and reached even higher. It looks as if the market is trying to reach towards 1.10 level above, so I think pullbacks may come from time to time but those should be nice buying opportunities on short-term charts. I believe that the gap that we formed on Monday should continue to offer support, so I have no interest in shorting this pair and I believe that any pull back at this point will more than likely offer value that you can take advantage of. I believe that the 1.0750 level underneath is the “floor” in the market, and because of this I have no interest in selling, at least not anytime soon.
GBP/USD
The British pound continues to consolidate above the 1.2750 level, and more importantly, the 200-exponential moving average. The area that we find ourselves just above has previously been resistive, and it now looks as if it should be supportive. Because of this, I think that the buyers will return to this market when we dip, as it should represent value in a market that has obviously broken out recently. I believe that the market should then go to the 1.3450 level above, but right now it appears that the market is content to sit still.
The market should continue to favor the British pound as we have seen such bullish pressure as of late. So therefore, I have no interest in selling, so now I look at those drops as value waiting to happen. The market should continue to look healthy, as the British pound has been oversold for so long. The market seems to be changing the overall trend, and that of course is a very strong sign that longer-term we could reach to higher levels.
