EUR/USD
The EUR/USD pair has rallied significantly during the trading session on Monday, as the US dollar continues to get pummeled. We broke above the 1.23 handle briefly, and then gave back some of the gains. However, the market has broken out significantly, so I think that any pullback that we get is an opportunity to pick up value underneath. The 1.21 level underneath is the beginning of major support, and I am now waiting to see some type a pullback that I can pick as an opportunity to go long. I think buying above here is probably simply chasing the trade, which is one of the best ways to lose money that I know of. Ultimately, this market should go looking towards the 1.24 level above, and perhaps even the 1.25 level. The breakout above the 1.21 level tells me that we are going higher in this market longer term.
GBP/USD
The British pound has broken higher again during the trading session on Monday, clearing and overcoming the highs from the Friday session. The market should then be able to break above the 1.38 level, given enough time. I think short-term pullbacks will be buying opportunities as it gives us an opportunity to pick up value. The 1.3650 level underneath is set to be support as it was massive resistance, and I think that now that we have cleared the gap on the longer-term charts, the market is free to go much higher, and I believe that we are getting ready to see a longer-term move to the upside in the British pound. This will be especially true if the agreement between the European Union and the United Kingdom turns out to be reasonable as the British leave the European Union.
