EUR/USD
The Euro bounces slightly during the trading session on Friday, but of course it was a holiday so there isn’t much in the way of liquidity. The 1.12 level underneath is massively supportive, so of course we do have to keep in mind that we could bounce from here. However, the 50 day EMA above could offer plenty of resistance, and if we can break above the 1.1325 handle, then we could continue to go towards the top of the overall consolidation area that extends all the way to the 200 day EMA, possibly even the 1.15 level after that.
On the downside, if we can break down below the 1.1150 level underneath, then we could drop down to the 1.10 level after that. That of course would show a lot of US dollar strength, so we would probably see the greenback strengthen against many other currencies.
GBP/USD
The British pound went back and forth during Good Friday, but the lack of liquidity means that you can’t read too much in the charts for the day. We are sitting just above significant support in the form of the 1.30 level area, which I think extends down to the 1.2950 level. If we break down below that, then the descending triangle could very well reach down towards the blue box that I have on the chart, as measured against the descending triangle. On the other hand, if we break above the downtrend line, then we could go to the 1.3350 level.
At this point in time, we could get a short-term bounce but it’s not until we break above that downtrend line that I think it’s worth trying to trade. Obviously the British pound is drifting lower, mainly because there is a lack of news flow when it comes to the Brexit currently.
