EUR/USD
The EUR/USD pair rose during the course of the day on Monday, breaking above the 1.13 level again. By doing so, the market looks as if it is trying to continue going higher, but we have a significant amount of noise between here and the 1.14 level and it appears that the market will try to rise but will have quite a bit of volatility.
Pullbacks at this point in time should continue to see support below, especially near the 1.1250 level which has been supportive over the last several sessions. Ultimately, this market will probably try to reach the 1.15 level given enough time but there is so much noise above we think that it will continue to be a “buy on the dips” type of situation. With this, we don’t have any interest in shorting this market as it seems to be continuing the uptrend going forward.
GBP/USD
The GBP/USD pair initially fell during the course of the session on Monday, but turned right back around and formed a massive green candle. By doing so, it looks as if the British pound will continue to fight, but at the end of the day this is a market that will more than likely continue to bounce around in this general vicinity as there are so many different things going back and forth as far as economic headwinds are concerned, so having said that this is a market that I really have no interest in trading. I recognize that above there will be a significant amount of resistance, so there is the possibility of perhaps shorting an exhaustive candle above, but obviously I don’t have that on the chart to take advantage of. With that being the case, and simply waiting to see that happen and will have to be patient before placing any trade. At this point in time, it’s probably best left alone.
