EUR/USD
The EUR/USD pair fell initially during the course of the day on Monday, but then turned right back around to form a hammer. The hammer of course is a very positive sign, and as a result it is a market that will continue to grind its way higher. The 1.14 level begins a significant amount of resistance all the way to the 1.15 handle, so it’s going to be a tough fight higher. However, I have no interest whatsoever in selling this market because I see so much in the way of support down at the 1.13 handle. On top of that, the market has to deal with the fact that the Federal Reserve is more than likely going to step away from a couple interest-rate hikes. If that’s the case, the US dollar is far too overvalued at this moment in time.
GBP/USD
The GBP/USD pair rose during the course of the session on Monday, but right now we are currently in the middle of the overall consolidation area that the market has been bouncing around in, with the 1.41 level on the bottom being the support, and the 1.44 level being resistance.
Looking at this market, it’s difficult to place a trade in the middle of this area, because quite frankly it has been so choppy. So I’m actually going to wait until we get either a resistive candle above, or supportive candle below in order to start trading. With that being the case, the market is one that I’m staying out of at the moment but I believe we will probably stay very choppy and consolidated for the foreseeable future due to the fact that the United Kingdom lately the European Union, but at the same time we have the Federal Reserve stepping away from potential interest-rate hikes later this year. In other words, there is reason enough to think both of these currencies could be a bit soft.
