EUR/USD
The EUR / USD continues its cautious gains as the pair rose to 1.1743 early Thursday ahead of the ECB's announcement of its monetary policy decisions and comments of its governor Mario Draghi. Trump’s announcement of reaching an agreement with the European Union to reduce tariffs to avoid escalation to the trade war provided a strong incentive for the euro to advance against the US dollar. On the upside, the pair will have an opportunity to rebound higher if it breaks the 1.2000 resistance level again. Otherwise the general trend in this pair will remain bearish. I believe selling on tops is still the best strategy in this pair.
GBP/USD
For the fifth day in a row, the GBP/USD is attempting to make a correction and reached the 1.3213 level in early morning trade after the trade war eased when Trump agreed with the European Union to cut tariffs, weakening US dollar. Brexit fears remain and the British government has a fragile future and political and economic shocks are expected to shake confidence in the pound. The pair dropped to the support level of 1.2957, its lowest since 10 months before it rebounded higher. The momentum is still strong for the US dollar and the testimony of Federal Reserve Governor Jerome Powell confirms this momentum. On the upside, the chance of a rebound will be stronger if it comes back above 1.4000 psychological resistance, otherwise it will remain the strongest drop for the pair.
