EUR/USD
The EUR/USD pair went back and forth during the course of the day on Thursday, showing bits of support after a significant fall during the Wednesday session. Because of this, the market looks as if we could see a bit of buying pressure in this area, as we continue to try to break out to the upside. I believe that will be the case, but it’s not going to be easy anytime soon, as there is a lot of volatility and of course a lot of things to concern traders overall. With this, the market should then reach towards the 1.14 level, and then perhaps try to break above the 1.15 level given enough time. Once we break above the 1.15 level, I feel that the market is free to continue going much higher and more of a buy-and-hold manner.
GBP/USD
The GBP/USD pair fell initially during the course of the day on Thursday, but found enough support to turn around and form a hammer. The hammer of course is a very positive sign, and if we can break above the top of it, we could very well go back to the 1.4250 level. This is a market that is currently still within the larger consolidation area that we have been in for some time, so at this point in time I feel it’s only a matter of time before we return to back and forth trading. This is why I have no interest in buying this market although we do have a technical buy signal for the session. Perhaps we will rally just long enough for day traders to make a bit of money, but at this point I feel it's going to be much easier to simply wait until we get a clearer signal or more importantly, until we get some opportunity to actually move instead of just simply chop.
