EUR/USD
The EUR/USD pair initially rallied during the course of the session on Wednesday, but struggled at the end of the day and we ended up pulling back to form a little bit of a hammer. Ultimately if we break down below the bottom of the chart, the market could then head down. Nonetheless, this is a market that could also find plenty of support between here and there, so therefore we are actually looking to see whether or not we get some type of supportive candle below in order to start buying, as I believe that the Federal Reserve stepping away from a couple of interest-rate hikes will more than likely continue to punish the US dollar overall. With this, we eventually go higher but it is going to be fairly significantly volatile in general. Given enough time, we could also break above the top of the shooting star from the session on Wednesday, and that would be a buying opportunity as well.
GBP/USD
The GBP/USD pair broke higher during the course of the day on Wednesday, but turned right back around below the 1.45 level, and as a result we did up forming a bit of a shooting star. A break down below the bottom of the shooting star would send this market lower, perhaps reaching towards the 1.41 handle. After all, I believe that we are essentially caught in a consolidation area, and with the various moving pieces in this market, I would not be surprised at all to see us staying there.
Ultimately, I think that the United Kingdom possibly leaving the European Union will continue to put a bit of pressure on the British pound, and we also get GDP numbers coming out of the United Kingdom today as well. Both of those reasons could put pressure on the British pound overall, but at the same time we have the Federal Reserve stepping away from a couple of interest-rate hikes this year, and that puts pressure on the US dollar. With that, I find it very difficult to think that the market is ready to break out.
