EUR/USD
The Euro initially pulled back during the trading session on Monday but found enough support in the form of the 50 day EMA to rally. However, after doing that we have pulled back a bit so it looks a little bit more neutral than it should have been. There is a massive candle stick from the Friday session showing just how much support is below at the 1.13 level, and I think at this point it’s only a matter time before we try to break out. I think it’s good to take some time though, as the resistance and that area has been so brutal. Ultimately, I think that the market will eventually find reasons enough to go above there, but right now I suspect that we will continue to go back and forth, looking for an opportunity to finally break to the upside. If we did turn on a break down below the 1.13 level, that would be extraordinarily negative sign. I think a lot of volatility with a slightly upward slant is what we can expect to see.
GBP/USD
The British pound pulled back a bit during the trading session on Monday, as we may have gotten ahead of ourselves. Ultimately, the 1.32 level has offered significant resistance, and I think that we could pullback from here, looking for some type of support. The 200 day EMA underneath is starting to turn higher, as it is sitting on top of the downtrend line from the descending triangle. We do have a vote coming out of the UK parliament though, which of course will have a lot to do with where we go next as far as the Brexit is concerned. I think that we will find buyers underneath though, so this pullback could be thought of as an opportunity.
