The Euro rallied a bit during the trading session on Wednesday, as we continue to see upward pressure overall. We have found an uptrend line to offer support, and it looks likely that we continue to go much higher. The 1.21 level above is the recent high, and I think that’s the target. If we can break above there, the market is ready to go much higher. Once we clear the 1.21 handle, the market should then go to the 1.25 level next, and it would also signify a break of a bullish flag on longer-term charts, meaning that we could go as high as 1.32 after that. I believe that we continue to be a “buy on the dips” scenario, and with that being the case it’s likely that we will continue to see value hunters coming into this market place.
The British pound tried to rally during the trading session on Wednesday, but turned around to form a shooting star. The shooting star is preceded by a hammer, so that suggests that we are going to go back and forth in a choppy manner, but I think it’s only a matter of time before the buyers get involved and push this market to the upside. I believe that the 1.3333 handle underneath should continue to be supportive, not to mention the uptrend line underneath could offer a significant amount of bullish pressure, and send this market towards the 1.35 handle, and eventually the 1.3650 level after that. I believe that the British pound continues to be thought of as a value currency, and after we get the results of the negotiations between London and Brussels out of the way, I think we will start to see an acceleration to the upside.