DailyForex.com
EUR/USD
The EUR/USD pair fell during the day, testing the 1.0750 level. That’s an area where I would expect to see quite a bit of support, and I believe that the support extends down to the 1.07 handle. With this being the case, it’s very likely that the markets will form a supportive candle that we can act upon soon. With this being the case, I believe that it’s only a matter of time before we reach towards the 1.09 handle again, and then eventually the 1.10 level. However, if we managed to break down below the 1.07 handle, I then feel that this pair is going to drop towards the 1.06 handle. Regardless of what happens next, I think the one thing you can count on is volatility as the market is certainly very choppy as of late.
GBP/USD
The British pound continues to be volatile in general, but I believe it’s only a matter of time before the buyers return every time we fall. After all, during the Monday session we have the Article 50 being triggered. That is a major event although it was known ahead of time. The fact that the market first sold off and then bounced significantly after that announcement tells me that there were plenty of value investors below willing to take advantage of this. Ultimately, I am very bullish of the British pound longer term but I recognize there are hard days ahead. You will more than likely be better served waiting for pullbacks from time to time in order to take small positions in this market. Eventually we can break above the 1.27 handle, which would be very bullish and should send this market looking at a much higher levels. Until then, anticipate a lot of choppiness but eventually I believe the buyers will return every time there is value offered so therefore I don’t have any interest in selling.
