EUR/USD and GBP/USD Forecast - 14 February 2017

The EUR/USD pair tried to rally during the day on Monday, but ran into far too much exhaustion at the 50-day exponential moving average to continue. Because of this, we ended up turning around and forming a shooting star looking candle, which sits just below the hammer from the previous session. It now looks as if the EUR is going to drop down below the 1.06 level, and perhaps reach towards the 1.05 level where I anticipate more support. When you look at the MACD, it is obvious that we are running out of momentum so a continuation to the downside makes quite a bit of sense. There are still a lot of concerns about the European Union, and the US dollar should continue to strengthen overall going forward, adding even more bearish pressure in this market.