EUR/USD
The Euro fell pretty hard during the trading session on Thursday but remained above the vital 1.12 handle. In fact, we started to see buyers at extreme lows so the question remains whether or not we are going to be able to hold in this range? Looking at the chart, is very easy to see that the 1.12 level has been crucial support, and therefore it’s likely that we will continue to see interest in this area. To the upside, we continue to see massive resistance at the 1.15 handle, so this is an area that I think continues to attract attention overall and as we are at the bottom of the larger group, it’s likely that we will bounce. However, on the other side if we break down below the 1.1150 level, the market would break down significantly as it is a large, round, psychologically significant figure and of course the scene of previous resistance.
GBP/USD
The British pound has broken down rather significantly during the day as we continue to see the British pound gets slammed around by headlines involving the Brexit, and of course all of the overall noise. With that in mind, I think that this is a market that will continue to be noisy, but it looks like the buyers step in to make higher lows, so with that being the case the 1.30 is essentially the “floor” in the range that we are in right now, so we are getting close to an area where the buyers should step in. However, the 1.3350 level above is massive resistance. Because of this, I think we continue to try to build up enough momentum to finally break out. If we break down below the 1.30 level, then I think we “reset” closer to the 1.2750 level.
