EUR/USD
The Euro fell during trading on Wednesday but turned around of form a hammer again. This market looks as if it has a lot of support underneath, and quite frankly I think that given the type of day we had on Wednesday, it’s all but assured to go higher. The market place continues to see a lot of volatility, and word got out during the day that perhaps Germany and the United Kingdom were softening their negotiating stance, sending both the Euro and the Pound much higher. However, shortly after that a German official came out and said that wasn’t true, and the markets just kind have frozen since then. Two hammers in a row is typically a good sign though, so I think we are going to go higher, perhaps reaching towards the 1.1725 handle.
GBP/USD
The British pound had a very rough trading session on Wednesday as well, reacting very positively to the rumors that were spread around Twitter, causing bots to jump into the market and start buying the British pound. However, as word got out that it wasn’t true, or at least wasn’t being confirmed, this pair pulled back rather drastically, showing extreme amounts of resistance above. The downtrend line continues to be an ominous signal, so I don’t think that the market is one that you can buy until we clear that level. If we get some type of supportive daily candle, it might make it worth buying, but I think it’s unlikely that this is a place where you should be trading any serious amount of money right now. You can see how quickly the market reacted to news about the Brexit . In fact, this is all news driven at this point.
