EUR/USD
The EUR/USD pair initially tried to rally during the day on Thursday, but turned right back around at the 1.1250 region to form a negative candle. It looks as if the market could reach back down towards the 1.11 level, an area that has caused quite a bit of support recently. With this being the case, I think that we will have to wait until we get the Nonfarm Payroll Number out of America today, which should continue to add to volatility in this market. We will eventually break either above the 1.1250 level, or below the 1.11 level, which signals the next trading opportunity. If we break down, I am aiming for the 1.10 level below, and if we break above, I’ll be reaching for the 1.1350 handle.
GBP/USD
The GBP/USD pair initially tried to rally during the course of the day on Thursday, but turned right back around just below the 1.45 level to show that there is still significant noise in that area and of course resistance. With the Nonfarm Payroll Numbers coming out during the day today you can expect quite a bit of volatility in this pair, not to mention the fact that we still have headline risk coming out of London with the possible exit from the European Union by the United Kingdom. As long as that vote still in the background, it’s very likely that the sparrow be difficult to deal with.
If we break above the 1.45 level for more than 2 hours, at that point time I would be willing to buy this pair, but beyond that it can be difficult to deal with today. Quite frankly I feel that you will be better off trading the US dollar against other currencies such as the Euro and of course the Canadian dollar.
