EUR/USD
The EUR/USD pair went back and forth during the course of the session, forming a very volatile and neutral candle. With this being the case, it shows that the market isn’t ready to make up its mind, and quite frankly a lot of the noise would’ve been from the erroneous report down to the European Central Bank was ready to cut back on quantitative easing. Once that was debunked, the market went right back to where once was. Ultimately, this is a market that I think has negative pressure, but that’s about it - pressure. I think that you could sell short-term rallies if you are so inclined to scalp the market, but at this point in time I have no interest in risking any money.
GBP/USD
The British pound broke down rather significantly during the day on Tuesday, finally clearing the 1.2850 level to the downside. Because of this, I think we are heading to the 1.25 level, and short-term rally should continue to offer nice selling opportunities. The 1.2850 level should be the “ceiling” in this market now, and with that being the case it is a market that I can only sell at this point in time.
A lot of this was due to the fact that the Article 50 trader to leave the European Union is becoming more and more of a reality, and while I do not understand why this surprises anyone, I think that a lot of traders are a bit blindsided as they only deal with financial types. The reality is that the boat past, and the exit from the European Union will happen. It is because of this that I think we have more of a grind lower and not necessarily meltdown. In fact, we’ve already have the meltdown so there’s no need to do it again. I have no interest in buying, and will continue to sell every time I think there is value to be had.
