EUR/USD
The EUR/USD pair initially tried to rally during the course of the session on Wednesday, but turned around to form a massive shooting star. Ultimately, this is a market that seems to have quite a bit of bearish pressure in it still, and the fact that we could not hang onto the gains during the day on Wednesday suggests that the sellers are very much still in control. Buyers have no real backbone at this point in time, so having said that I feel that the sellers will continue to push lower, and eventually make even fresh, new lows. Exhaustive candles after short-term rallies are nice selling opportunities, as we have seen during the day on Wednesday. I have no interest in buying at this point in time.
GBP/USD
The British pound rose slightly during the course of the session on Wednesday, as we continue to bounce around in general. With this being the case, it’s probably only a matter time before we rally but I think a nice rally will only bring an even nicer opportunity to sell off of an exhaustive candle. At this point in time, I believe that the 1.20 level below is massively supportive, so I do not expect the market to have an easy way to go below there. It makes sense that we have to rally, because and gives us more momentum to the downside when we selloff. I have no interest whatsoever in buying, although I do recognize that we will probably bounce. Quite frankly, it simply going to be much easier to wait for a nice selling opportunity and go with the longer-term trade. With this, I am on the sidelines and hoping for a bounce with some type of exhaustion so I can start selling again as the trend has been so reliable over the last several months.
