EUR/USD
The EUR/USD pair had a very strong session on Thursday, so it was a little bit of a harbinger of what we would see on Friday. With the jobs number coming out strong, it was more of a “risk on” type of situation, and the market found itself reaching towards the 1.10 level above. We had initially pulled back, but you will notice that we pulled back to the previous resistance at the 1.0950 level. It was a perfect place to see buyers step in, and now it looks as if we are ready to break above the 1.10 level and start looking for higher pricing. The French election polls suggest that it will avoid an anti-EU government, so that of course helps with the currency pair going forward.
GBP/USD
The British pound broke out during the day, confirming the bullish flag that had been forming. We are above the 1.2950 level, and because of this it looks as if we are ready to challenge the 1.30 level above. If we do, I think we will break above their given enough time, perhaps reaching towards the 1.3450 level. That is an area that had been resistance in the past, so it makes sense that the market would go back there to test that level. I don’t know if we can break above their, because there is a massive gap just above the level, but I certainly think it is an attractive target. With the British pound breaking out recently, I believe that it is only a matter of time before we reach those lofty levels, and therefore remain very bullish of this market.
Pullbacks offer value, and I think there is a significant amount of support at the 1.2850 level now, and I consider that to be the short-term “floor.” Going forward, I believe that the British pound has changed the longer-term trend.
