EUR/USD
The EUR/USD pair initially trying to fall during the day on Wednesday but turned right back around to take back all of the losses from Tuesday. Because of this, looks as if we are going to continue to grind higher and I do believe that we will probably target the 1.14 level. Because of this, I believe that the market will offer short-term buying opportunities again and again. I don’t know if we can break above the 1.14 level, but even if we do there is an even more intense resistance barrier at the 1.15 level. I think a lot of this will be very difficult to deal with, as the markets have a lot to digest, especially considering that the Federal Reserve had to sit still today.
GBP/USD
The GBP/USD pair rose during the day on Wednesday, using the 1.41 level as a bit of a springboard. That being the case, the market looks as if it is going to be very volatile as we also have a massive shooting star from just a couple of sessions ago. As long as there is a concern about the United Kingdom leaving the European Union, that will be very negative for the British pound as people have no idea what to do with that kind of information. On the other hand, the Federal Reserve simply could not do anything about interest-rate hikes, so one has to believe that perhaps the US dollar might take it on the chin.
Initially, Federal Reserve was expected to have several interest-rate hikes during the course of the year, so having said that the US dollar had quite a bit of strength underneath it. However, it now looks as if the market won’t get those interest-rate hikes, so it makes sense that the US dollar will continue to suffer. This is a currency pair that features 2 currencies that are going to be very skittish to say the least. Because of this, I’m staying away.
