EUR/USD
The EUR/USD pair initially drifted a bit lower during trading on Tuesday but found enough support to turn around and rallied again. Because of this, it looks as if were going to go trying to break above the 1.24 handle. If we do, then the market will deal with the 1.25 level above, which is massive in its implications. That is an area that should continue to be massive resistance, and if we can break above there I think that the market is free to go much higher. This would be a continuation of the overall uptrend that we have seen for some time and could go a long way to fulfilling my predictions of a 1.32 target. That prediction is based upon the weekly chart, which had this pair breaking the top of a bullish flag several weeks ago, with the measurement of course bringing that level into focus.
GBP/USD
The British pound has broken to the upside during the trading session on Tuesday, raking above a downtrend line, reaching towards the 1.40 level, and then pulling back slightly. The market looks as if it is trying to break out to the upside, and beyond that we have pierced the 50-day EMA. When this many technical signals line up in one spot, it’s very rarely a coincidence. I believe it is only a matter of time before the sellers get involved and start to push this market higher, and when they do this market should continue to see a lot of buying on dips. If we do break above the 1.40 level, I feel that it’s only a matter of time before we go looking towards the highs again at the 1.43 level. It’s not to say that we will get there overnight, but most certainly that would be the next target on the radar.
