EUR/USD
The EUR/USD pair initially tried to rally during the day on Monday, but as you can see on the chart failed miserably to hang onto the gains. I also have the 50 day exponential moving average plotted on the chart, which has been offering dynamic support as of late. Because of this, we could get buyers in this market but I would have to see a move above the top of the shooting star for the session in order to start buying. If we do break down from here though, there is more support below, especially near the 1.12 level so I feel that any selling opportunity is going to be short-term at best. A break above the top of the shooting star would be reason enough to start buying and aiming for the 1.14 handle.
GBP/USD
The British pound rose during the day on Monday as the market found plenty of support near the 1.43 handle. With this being the case, the market should try to grind higher but I see a significant amount of resistance of the 1.45 level. I think if we can break above there, especially on a daily close then it should be a nice buying opportunity. Between here and there, I think it’s going to be far too noisy to get involved in this market, but if we broke down below the lows of the session on Monday, I could consider selling this pair down to the 1.42 handle. Either way, I am not expecting any type of massive move and I think the volatility and more importantly the choppiness should continue over the next several sessions.
There isn’t much to move the markets at the moment, so quite frankly it’s probably going to be a situation where binary options might be your best bet as trading the Forex market is going to be very difficult when it comes to the British pound against the US dollar.
