EUR/USD
The Euro initially fell below the 1.05 level during the day on Wednesday, but during the press conference from Donald Trump, the market turned around and formed a rather bullish candle. It now looks as if are going to try to reach towards the 1.07 level though, which I believe is a massive barrier. I think given enough time, we will see sellers enter this market, and with this I am patiently waiting another selling opportunity based upon for our charts or even lower. Eventually, I believe we break down below the 1.05 level and then reach towards the 1.0350 level after that. Have no interest in buying the Euro, at least not anytime soon.
GBP/USD
British pound fell initially during the day as well, but then turned around to form a massive hammer. This is a very volatile market, and I believe that a bounce is simply going to be a nice selling opportunity after signs of exhaustion as well. The 1.25 level above should continue to be massively resistive, and as a result I feel that buying is all but impossible to do. Although I do recognize that we will probably go higher, the reality is that we have a lot headwinds when it comes to the value of the British pound, as the Federal Reserve is likely to raise interest rates, while the Bank of England seems very unlikely to.
Eventually, I think we will break down below the 1.20 level, and once we do the market should then drop to the 1.15 level which is massive support on monthly charts. Because of this, the market should continue to favor sellers over the longer term, but we will get volatile bounces from time to time like we have seen during the Wednesday session. It is not until we break well above the 1.2750 level that I would consider buying.
