EUR/USD
The EUR/USD pair has rolled over again during the day on Tuesday again, but as you can see, I have a nice uptrend line on the chart, and I think that if it holds, it could be a sign to start buying again as we have been building up pressure to the upside. By breaking above to the fresh, new high, that would signify that the market was ready to continue what has been a nice grind to the upside. If we break down below the uptrend line that we have seen, it’s likely that the market will continue to reach towards the 1.15 handle. Otherwise, I think the uptrend continues, and a break above the 1.21 handle frees the market to go much higher, perhaps to the 1.25 handle next.
GBP/USD
The British pound fell initially during the trading session on Tuesday, but found support at the 1.35 level yet again. By doing so, the market looks likely to continue to find buyers on dips, but I recognize that the uptrend line is far below, and I think that if we were to break down below the 1.35 handle, the 1.3333 level would be massive and its importance, and if we were to break down below there I would become concerned about the uptrend line. However, I think that we will more than likely continue to reach towards the 1.2650 level, and if we can bounce from this area, I think that it will be another attempt a breakout for the longer-term move. A break above the 1.3650 level should send this market towards the 1.40 level. I believe that given enough time, the market should continue to find plenty of buyers, but you should be very cautious about jumping in with both feet.
