EUR/USD and GBP/USD Forecast
The Euro went back and forth during the trading session on Thursday, as we continue to see a lot of noise. The 1.14 level has caused a bit of selling, and now we find ourselves hanging about the 50 day EMA. The market is right in the middle of the overall consolidation region, which I think it extends from the 1.12 level on the bottom and the 1.15 level above. At this point, I think that the market may pull back slightly, but buyers should be more than willing to pick up value. The 1.12 level underneath features the 61.8% Fibonacci retracement level which is a huge demand level by institutions on the weekly and monthly charts as well. Because of this, I like buying this pair on dips and we may get one here.
The British pound fell slightly during the trading session on Thursday, as the 1.3350 level has caused resistance. By pulling back just a bit, it looks as if we will remain somewhat contained, but I believe that containment is an opportunity to pick up the British pound at lower levels. I think that the 1.30 level underneath should be a nice buying opportunity, and I believe that we could continue to go to the upside. We have broken above the downtrend line that I have marked on the chart, tested it, and then reached to the upside.
Looking at this chart, I do believe that the entire trend has change, and I think that it’s only a matter of time before buyers pick this market up. I have no interest whatsoever in shorting the British pound, and what I’m hoping for is some type of headline that as the machines selling. At that point I more than willing to pick up a bit of value.