EUR/USD
The Euro rallied a bit during the trading session on Monday initially, but then turned around to form a bit of a shooting star out the 1.13 level and has offered enough resistance to turn the market around. This doesn’t necessarily look like a major selling opportunity though; I believe at this point it’s a simple pull back waiting to happen. That pullback should be a buying opportunity, especially as we approached the 1.1250 level. Below that level it’s another range of support all the way down to at least the 1.12 level so at this point I think it’s very likely that we are going to find value hunters underneath.
The alternate scenario of course is that we break above the highs from the Monday session, which could send this market looking towards the 1.1450 level above there. That is an area that will feature the 200 day EMA, which of course would attract a lot of attention.
GBP/USD
The British pound initially rallied during the trading session on Monday but gave back the gains at the same area yet again that we have seen cause problems for several days now. Overall, if we can break above the 1.3150 level the market will go higher, but at this point I think we are probably more likely to see more grinding back and forth in this general area.
The 1.30 level underneath is a “floor” in the area, and I think if we get a daily close below that level we could send this market down towards the 1.28 level. That area extends down to the 1.27 level, and at this point I think that to the upside we have a lot of resistance at the 1.3350 level. We are simply meandering back and forth in the meantime and waiting for a conclusion to the Brexit situation.
