EUR/USD
The EUR/USD pair did very little during Monday trading, as we continue to bounce around the 1.14 level. This area is resistive, so having said that it’s likely that the volatility will continue. If we can break above the highs from the Friday session, the market will then reach towards the 1.15 level above. If we can break above there, then the market can go much higher, but in the meantime, I think we will see a lot of back and forth trading, with the 1.13 level underneath being the floor of the market. If we broke down below there, I would be a bit more skeptical, but right now I believe that short-term pullbacks are probably going to be bought due to the impulsive move over the last several sessions that we have seen.
GBP/USD
The British pound went back and forth during the day on Monday, as we are sitting just below the 1.29 level. If we can break above the top of the range for the day, the market should then go to the 1.30 level above, and then possibly even test the highs from Thursday. If we can break above that level, I feel then that the market can continue to go much higher. In the meantime, I believe that the 1.28 level is probably more supportive, so I would not be surprised at all to see this market drop a little bit in the short term to find more substantial support. If we break down below there, the market could continue to fall off even further, but I suspect that the buyers will be waiting for that pull back as it represents value and support on longer-term charts as we continue to see bullish pressure over all when it comes to this market.
