The EUR/USD pair rallied on Friday, bouncing off the 1.1150 level. The market should continue to see volatility, and I believe we can ago reaching towards the 1.13 level above which has been massively resistive. To break above there since the market looking towards the 1.15 level above, which is the longer-term resistance barrier on the longer-term consolidation that the market has been following for almost 3 years. Breakdown below here could send this market to the 1.10 level underneath, which is reasonably supportive as well. Ultimately, the market should continue to find significant amounts of choppiness, but I still believe that there is an upward bias overall. I don’t think that we will break above the 1.15 handle above, so at that area I would be looking at selling once we get there. In meantime, I think you are going to have to deal with quite a bit of back-and-forth high-frequency trading.
The British pound initially tried to rally on Friday, but get back some of the gains as we approached the 1.2830 level. I think that the market will continue to be difficult, as there are a lot of moving headlines out there that can affect the British pound, especially when it comes to the exiting from the European Union. A break above the top of the range for the Wednesday session has me looking for the 1.3050 level, but a breakdown below the 1.27 level is bearish and send me looking to lower levels. Ultimately, this market will continue to be battered around by same as coming out of politicians, and that of course is not an easy way to trade currencies. With this, be careful, and make sure that you keep your position size relatively small as losses could happen rather quickly.