EUR/USD
The Euro fell during the trading session on Wednesday, slamming into the 1.15 handle. The market has recently seen a lot of support in this area and extending down to the 1.1450 level. Because of this, it looks as if the buyers will probably return eventually, but this candlestick is very ugly. I would step to the side for 24 hours and see how the support holds up. If it does not, then we could have a very serious fight on our hands just below current levels. If we do bounce, I would anticipate a move towards the 1.16 level which of course would find resistance at that area again. It’s a market that of course is driven by interest rates climbing in the United States but at the same time we have to worry about Italian debt, which of course has been working against the value of the Euro in general.
GBP/USD
The British pound has fallen during the trading session, reaching towards the 1.31 handle. That’s an area that has been both support and resistance as of late, but I think eventually we could drift a little bit lower. If we do, that’s fine I think there are plenty of buyers at the 1.30 level underneath. We have recently broken above a major downtrend line, and quite often what you will see afterwards is a lot of sideways action before we can continue to go higher. However, if we were to break down below the 1.29 handle, that would probably send this market much lower, as it would be a major turn of attitude. The Brexit of course continues to cause issues, but I think a lot of longer-term value hunters have come into this market.
