EUR/USD
The EUR/USD pair fell slightly during the Monday session, as we broke below the 1.18 level. However, there has been a significant amount of support just below that level, so I think that we will continue to find buyers in this market. I believe that after the recent volatility, the market may be trying to find its footing in this area, and that probably means consolidation. With that being the case, I think that buying short-term dips will continue to be the best way to play this market, and that we should go looking towards the 1.19 level again, followed by the 1.20 level which is very important from a longer-term perspective. I believe that we eventually go to the 1.25 level based upon a break of an ascending triangle previously, which measured for a move to that level.
GBP/USD
The British pound fell during the session, breaking below the 1.3250 level. However, we found enough support underneath to turn things around, and it now looks as if we will try to continue to go higher. I think that a break above the highs from the Friday session would be very bullish, sending this market towards the 1.35 level over the longer term. I believe that there is plenty of support below, and it’s not a market that I’m ready to start selling anytime soon. I think that the British pound continues to show signs of strength based upon the Bank of England raising interest rates rather soon, so I think that the dips that will be coming in this pair should offer buying opportunities. It’s going to be choppy, but most certainly is can be very bullish move over the longer term. Small position sizing will probably continue to be the best way to go.
