EUR/USD
The EUR/USD pair initially fell during the course of the session on Tuesday, but found enough support below to turn things back around and form a fairly positive candle. This positive candle doesn’t break out of the consolidation though, so I’m a bit hesitant to put any significant amount of money into this market. I believe that we will continue to have a lot of noise in the Euro, and of course this keeps this market very tight. I think the 50 day exponential moving average below could possibly cause a bit of support, but it’s not until we break above the 1.1050 level that I think we are truly broken out and can move higher with any type of significance I think short-term traders will continue to try to move this market in one direction or the other, but I think they are going to struggle to make any real headway in either direction at this point.
GBP/USD
The GBP/USD pair had an extremely volatile session during the day on Tuesday, initially rallying above the 1.43 level, but finding enough resistance above there to turn the market back around and fall significantly below the 1.42 level at one time during the day. However, we bounced off of that region as well, so although we ended up forming a fairly negative candle, the reality is that it wasn’t as bad as it could have been.
Regardless, I feel that this is a very negative market, and it should continue to be so. I think rallies offer selling opportunities, and most certainly a break down below the bottom of the session on Tuesday will as well. I have no scenario in which I'm willing to buy this market, because quite frankly at this point in time I feel that the 1.45 level is essentially the “ceiling”.
