EUR/USD
The EUR/USD pair initially fell during the day on Friday but found enough support at the previous uptrend line of the symmetrical triangle to turn things around of form a bit of a hammer. The hammer of course is a bullish sign, and it’s very likely that we should see the buyers come back into this market to reach to the top of the symmetrical triangle. If we can break above the downtrend line, then I think the market has a good chance go to the 1.1850 level after that. Ultimately, if we break down below the 1.16 level, it’s likely that we could test the 1.15 level underneath there which should be massive support. I think that we will continue to see volatility regardless, but I think that the market is trying to find a way to make a larger move.
GBP/USD
Meanwhile, the British pound went sideways during the day, but I think we are starting to see the market trying to form a bit of a bottoming pattern with the 1.30 level underneath as a floor. I think that the level has attracted a lot of attention structurally, and I think that it’s only a matter of time before the buyers come in and break the market above the downtrend line that we have seen. Overall, I think that the 1.30 level continues to be remembered for the massive resistance that we had seen previously, and with the Brexit coming to a head, people are a bit cautious about buying Sterling. However, if we get some type of resolution, this market will more than likely shoot straight up. If we break below the 1.29 level, then I think the market could unwind rather drastically.
