EUR/USD
The EUR/USD pair shot higher during the trading session on Wednesday, as the US dollar fell in general. This is a continuation of the move higher that we have seen recently, and the problems with the Trump administration continue to weigh upon the greenback. It now looks as if the market is ready to go to the 1.12 level above, and perhaps even higher than that. If we pull back from here, which I would love to see, I think there is a nice buying opportunities somewhere near the 1.10 level. On the other hand, if we break above the 1.13 level, the market should then continue to go higher and reaching towards the 1.15 level above there.
GBP/USD
The British pound also rallied against the US dollar, but finds itself struggling to break above the 1.30 handle. This is a massive psychological barrier, but if we can break above there I don’t see any reason this pair won’t reach the 1.3450 level over the longer term. There should be plenty of support for this move, due to the fact that the area previously had been so obvious. The uptrend line just below should continue to offer support as the 1.29 level should also. Because of this, I’m waiting for a break above the 1.30 level, but at that time would be willing to buy this pair of the we could have a nice run.
I have no interest in shorting, because even if we break the uptrend line below, I think there is plenty of support near the 1.2750 level to keep the market afloat. It’s not until we break below that level that I would consider selling as that would show a real breakdown in confidence. However, there seems to be enough concerns about the US dollar now that I think we will finally get to break out that we have been waiting on over the next couple of sessions.
