EUR/USD
The EUR/USD pair initially tried to rally during the day, but pulled back on Thursday. There was quite a bit of volatility during the US session in all markets, so this one of course was nonimmune. By the time the day ended, we did start to see a little bit of stability creep back into the pair, and we are most certainly bullish currently. However, we are getting a bit overextended so pullback would make quite a bit of sense. I would anticipate that the 1.15 level below should offer some support though, so any falling from here should be thought of as a potential buying opportunity based upon value.
GBP/USD
The British pound also tried to rally initially during the day but then turned right back around to form a rather bearish looking candle. Because of this, it looks as if the market is going to try to pull back towards the 1.30 level where I would anticipate there should be some interest. If we can break down below there, I’m not overly concerned until we break down below the 1.2850 level. Move below there has me selling this market aggressively. Otherwise, I anticipate that there will be buyers below, and that it’s only a matter of time before we can take advantage of value in a market that has broken out as recently as just a couple of weeks ago. The British pound continues to strengthen overall, and of course the US dollar is on its back against most currencies, so this pair of course isn’t going to be any different over the longer term. Thursday was a challenge, but quite frankly I think that we are simply seeing large positions reassert themselves in the market. I believe that we will continue to try to reach towards the 1.3450 level above.
