The EUR/USD pair has broken down during the trading session on Tuesday, slicing through the 1.23 level. It looks as if we are going to continue to see a bit of negativity, but there is a lot of noise just below that could keep this market somewhat afloat. I anticipate that there should be supportive the 1.22 handle, and most certainly at the 1.21 level under their, as it is the top of the previous resistance barrier. When you zoom out on the daily chart, you can clearly see that the 1.21 level was a major barrier that was breached, but has not been retested, something that is very basic technical analysis. Because of this, I think that we may see a little bit of negativity going forward, but I’m not looking for some type of massive collapse. When zoomed out, the chart looks quite healthy.
The GBP/USD pair has also fallen during the day on Tuesday, testing the bottom of the hammer from Monday. The market could not break above the 1.40 level, so we do not have a buy signal yet. If we can break above that level, then I think the market goes to the 1.43 handle. We could very easily drift a bit lower from here, and I think at this point somewhere near the 1.3650 level buyers would commit based upon value. The market continues to offer plenty of opportunities, but only for those who are patient enough for the opportunities present themselves. I don’t have any interest in shorting this market, I think we are simply looking for value. Ultimately, I do think that eventually the market will find reasons to go higher, so be patient and wait for some type of supportive daily candle to start buying, or a break above the previously mentioned 1.40 handle.