EUR/USD
The EUR/USD pair fell slightly during the course of the session on Thursday as we continue to meander around current levels. This is a market that will certainly be influenced by the jobs number coming out today in America, so it’s very likely that until we get that announcement, the pair will essentially drift sideways. Because of this, I am paying attention to the previous uptrend line, which should now be resistance. I would love to see some type of exhaustive candle in that general vicinity in order to start selling again. On the other hand, if we break down below the bottom of the hammer from Wednesday, I would be a seller there as well, as it would show weakness. I have no interest in buying this market until we get a daily close above the aforementioned uptrend line.
GBP/USD
The GBP/USD pair initially tried to rally during the course of the session on Thursday but found the area above the 1.30 level to be a bit too resistive. Now that we have broken above there and turned back around to form a shooting star, I believe that the market should continue to see bearish pressure overall. If we get some type of knee-jerk reaction to the upside, I think that has to be jumped on as potential value in the US dollar. I have no interest whatsoever in buying the British pound at this point in time, and I believe it is only a matter time before we fall even lower.
Exhaustion on short-term rallies will continue to be one of my favorite ways to short this market again and again as there has been a significant change in attitude due to the United Kingdom leaving the European Union. At this point in time, it seems as if it is a bit of a “one-way trade” in this market.
