EUR/USD
The Euro fell initially during the trading session on Tuesday but found enough support near the 1.17 level to turn around of form a hammer. The 50 day EMA looks to be causing a bit of support as well, and I think at this point we are looking at a market that is trying to get to the top of the consolidation area, which I have defined as the 1.1850 level above that. If we can break above that region, then we can go higher, perhaps reaching towards 1.20 level after that. In general, I am bullish in the short term but I also recognize that we will have a certain amount of volatility and resistance just above. I believe that short-term traders will continue to pick up dips, using the 1.17 level as support currently. I believe that if we do break down below there, we would probably turn around and go back to the 1.15 level underneath.
GBP/USD
The British pound rallied significantly during the trading session on Tuesday, but then gave up some of the gains by the end of the day. The 50 day EMA above would obviously cause a bit of resistance on Monday, and I think that there are a significant amount of concerns in that region, and I think that we will probably continue to see a lot of noise in that area, perhaps due to the back and forth of the Teresa May situation and how the exit from the European Union is being handled. At this point, we could get a “no confidence” vote, sending her down the road. If that’s the case we could get a much harder Brexit than originally thought. Nonetheless, I think that the uncertainty is going to continue to weigh upon the pair.
