EUR/USD
The EUR/USD pair gapped lower during the trading session on Monday, testing the 1.18 level underneath. We bounced enough to form a neutral candle, and we could turn around to fill that gap again. Most of the negative pressure would have been a result of the potential tax legislation coming out of the United States, which should be good for the US economy. If we can find reason enough to go long, that would be in the form of filling the gap in going higher. Ultimately, we could pull back to the 1.17 level underneath, and then find buyers. Because of this, I’m not necessarily willing to sell this market, but I’m looking for value in the EUR going forward. The 1.21 level above is massively resistive, but I think it is a strong target for the markets to run towards.
GBP/USD
The British pound gap lower during the session as well, but then turned around a break above the 1.35 handle. By the end of the day, we fell again to form a shooting star, and it looks very likely that we are going to drop to the 1.3333 handle. Because of this, I’m looking for a buying opportunity near that level as it was so massively resistive in the past, and should now be supportive. With that in mind, I’m going to step to the sign for the next 24 hours or so, and look for that value. Alternately, if we break above the top of the shooting star from the trading session on Monday, I’d be a buyer there as well. Ultimately, I believe that we are going to reach towards the 1.3650 level above, which is the scene of the gap layer from the surprise vote believe the European Union.
