EUR/USD
The EUR/USD pair had a rather positive session during the day on Friday, as we tested the 1.1450 level. There is a significant amount of resistance just above at the 1.15 level as well, so it more than likely will have to pullback in order to break out. I do think that we are about to see a break out though, not only because of this chart, but the fact that I am seeing the US dollar struggle quite a bit against other currencies, and of course commodities. With this, it seems to be a running theme, that the US dollar is going to fall. Ultimately, I believe that we do break out and we do continue to go much higher over the longer term. I think that once we break above the 1.15 level, we will probably target the 1.18 level that caused so much interest a few years ago.
GBP/USD
The GBP/USD pair initially fell during the course of the session on Friday, but found support just below and ended up turning the market back around. With this being the case, it looks as if the British pound is trying to wind up in order to build enough momentum to break out to the upside finally. With this being the case, I am bullish of this market if we can break above the top of the candle for the session on Friday, but in the meantime I recognize that it could be a bit volatile. With a little bit of luck, we will get the momentum to go higher and once we do I feel that the British pound will then reach towards the 1.50 level.
The United Kingdom is getting ready to have a referendum during the month of June, as to whether or not they are going to stay in the European Union. That might make this pair a little bit sluggish on the breakout as there are still plenty of concerns. However, at the same time the Federal Reserve looks less likely to pile on the interest-rate hikes, so that is working against the US dollar.
