EUR/USD
The EUR/USD pair went back and forth during the course of the session on Monday, as we continue to see the market trying to break higher. However, we eventually will have to probably pull back a little bit in order to find enough momentum to go higher. A pullback from here could end up forming a supportive candle that could attract quite a few traders. I believe at this point in time, we are reaching towards the 1.15 level, which was the massive resistance barrier that work against the value the Euro on longer-term charts. Pullbacks will more than likely find plenty of support based on what we ended up doing on Friday, as the jobs number in America was so poor.
GBP/USD
The GBP/USD pair gapped lower at the open on Monday, and then continue to fall but turned right back around to form a relatively neutral candle. Because of this, the market should continue to be very volatile and of course you have to worry about the headline risks coming from the United Kingdom, as they will be deciding whether or not to stay within the European Union. That being the case, this pair will be very volatile and could very well find sudden changes in direction being the norm for the British pound overall.
Ultimately, we are still in consolidation, and could go as high as the 1.4750 level, but at this point in time it seems like there is more downside likely in this market than up. The US dollar of course is a bit soft on the other side of the trade though, because quite frankly the Federal Reserve is in a bit of a pickle at the moment due to the fact that the jobs number was so out on Friday and they could keep the Federal Reserve raising interest rates anytime soon. This certainly will be a very difficult market to trade, and therefore it’s one of my least favorite markets at the moment.
