EUR/USD
The EUR/USD pair tried to rally during the day on Friday, but struggled a little bit to hang onto the gains for the day. If we can break above the top of the range for Friday, is very likely that we could continue to bounce around in this consolidation area, and with this being the case it’s likely that the market will try to reach towards the 1.13 level, and then eventually the 1.14 level as well. I think that it will remain very volatile, mainly because the Federal Reserve interest-rate outlook is a bit murkier than we had originally seen. Because of this, a lot of people will be betting for and against interest-rate hikes, and the EUR/USD pair is an excellent way to play that particular outlook.
GBP/USD
The GBP/USD pair broke down during the day on Friday, testing the 1.45 handle. The fact that we close towards the bottom of that candle suggests that we are going to continue to see a little bit of downward pressure, but I think there is a massive amount of support at the 1.44 level, so it’s unlikely that the market will be able to break down to that level easily. With all of the noise between here and there it is unlikely to be an easy market to trade to the downside at this point in time. If we get some type of supportive candle in this area, it might be a buying opportunity, but we honestly don’t have that at this point in time.
As long as there are a lot of concerns about the United Kingdom leaving the European Union, the British pound will probably be very difficult to deal with in general. That’s not that it can be traded, it’s just that we have so much in the way of noise in various places, all over the spectrum.
