EUR/USD
The Euro initially rallied during trading on Wednesday yet again, but as we have seen over the last couple of days there seems to be a significant amount of resistance, so the pullback shouldn’t be a huge surprise. As we are hanging around the 50 day EMA, and at this point it looks as if a pullback is somewhat likely. However, I suspect that there is a significant amount of support underneath that should keep the market somewhat afloat. This is especially true near the 1.1250 level, and then perhaps down to the 1.12 level underneath.
If we broke down below that level then everything changes, but I think at this point were just simply looking for a pullback to build up more momentum to fulfill the overall consolidation that I have marked on the chart.
GBP/USD
If you wanted to trade the British pound right now, you would probably be half-asleep after putting your money to work. The 1.30 level of course is a massive support level that extends down to the 1.2950 level, but recently we haven’t seen a lot of momentum to the upside either. I think the British pound is going to be very quiet for the next several weeks, mainly because we have had the extension, and now the headlines are coming very quickly. With that being the case I think that there is probably a short-term buying opportunity, but nothing that I would be overly interested in. A break above the 1.3133 level opens the door to reach the top of the range of the 1.3350 level but is probably more likely that we break down and “reset” near the 1.28 level. In the short term, it’s probably not worth being bothered with trading this market.
