EUR/USD
The EUR/USD pair went back and forth during the course the day on Monday, as we continue to go nowhere. This is a market that continues to be very choppy at best, and quite frankly I feel like there is no real drive to go in either direction and therefore I feel that this is a market that is probably best left alone. You might be able to trade in very short-term trades, but beyond that you’re going to have a very difficult time to hang onto the trade for any real length in time. Ultimately, this is a market that I believe is going back and forth based upon the headlines coming out central bankers, which means that it’s almost impossible to determine what we should do now. I believe we continue to bounce around between the 1.1150 level on the bottom, and the 1.1350 level above. With that, it’s likely that this is a market that I will be avoiding.
GBP/USD
The British pound initially fell during the course of the session on Monday, but turned around to form a relatively positive candle. By doing so, looks as if we’re going to test the 1.34 level, which extends all the way to the 1.35 level as far as resistance is concerned. Because of this, I believe that it’s only a matter of time before the sellers return, and as a result I believe and waiting for exhaustion in order to start taking advantage of value in the US dollar. On the other hand, we could break above the top of the gap which sits just above the 1.35 level, and at that point in time I would consider buying. This would be a move above the 1.3650 level, which should send this market looking for the 1.40 level next. However, I do believe that it’s only a matter of time before sellers take over yet again.
