EUR/USD
The EUR/USD pair initially fell during the day on Tuesday but found enough support below the 1.12 level to turn things around. In fact, we even got above the 1.13 level at one point, and that suggests that we are going to continue to see quite a bit of buying pressure. I believe that this market is trying to reach the 1.15 level, and it is probably only a matter of time before we do. I think that pullbacks will continue to be thought of as buying opportunities, and a marketplace that certainly seems to be breaking out of what had been rather significant and stringent consolidation.
A lot of traders out there now are starting to think that perhaps the Federal Reserve made a mistake and they will have to walk back the rate hike. Ultimately, there is no way to know what they’re going to do but it appears that the Federal Reserve may not be able to raise rates anytime soon.
GBP/USD
The GBP/USD pair went back and forth during the course of the day on Tuesday, as we continue to hover around the 1.45 level. Ultimately, this market could go higher but I think that there is a significant amount of resistance at the 1.47 level. I think that we could even go higher, perhaps reaching the 1.50 level but at this point in time the market doesn’t look as if it is in any hurry to do so.
There is a significant amount of support near the 1.44 handle, so if we do fall from here it is going to be a bit difficult. Quite frankly, we are in a longer-term downtrend though, so it would make a bit of sense. At this point in time, I feel this pair is much messier than the EUR/USD pair, so I actually prefer to trade that market over this one.
