EUR/USD
The Euro fell rather hard during the trading session on Wednesday, as we continue to test the support level just below. I think there is plenty of support down at the 1.12 level underneath as well, as it is the 61.8% Fibonacci retracement level. Beyond that, we have seen a lot of interest in this general vicinity that we are trading and, so it would not surprise me at all to see this market turned right back around and continues to grind. With that being the case, I would be a buyer of this market if we can break above the highs from the session on Wednesday. At that point, it’s very likely that the market could continue to see a lot of noise based upon the Federal Reserve and of course the inherent weakness that we see in the European Union. We are currently at the bottom of a longer-term consolidation area.
GBP/USD
The British pound try to take off to the upside as well, but yet again we saw US dollar strength. However, we are at an area that should see buyers, so I think at this point it’s only a matter of time before we bounced again. The 1.27 level underneath is supportive as well, and as we are hovering above the 1.2850 level, I think it’ll be interesting to see if we can start buying again. Looking at the chart, I think that there are a lot of things coming together where we could see buyers and all we need is some type of good news to send this market straight back up. I do believe that we have bottomed regardless, unless of course we have a “no deal Brexit.” Any other outcome of this current situation than that should have the British pound being bought.
