EUR/USD and GBP/USD Forecast
The Euro has had a very interesting trading session during the day, as we continue to see a lot of support based around the 1.12 handle, but at this point we have made a serious attempt to finally break through it. A bounce from here isn’t necessarily something you can count on, but it has been rather reliable over the last several months, so we continue to look at it as a potential buying opportunity. That being the case, if we can break above the top of the candle stick for the Tuesday session, then we could possibly see a bit of value hunting come back into play. The real tell will of course would be a break above the Monday highs. All things being equal though, if we break down below the bottom of this candlestick we could go as low as the 1.1150 level.
The British pound has had an interesting day, as we broke down below the 1.13 level rather handily due to the UK parliament not getting its act together yet again during late Tuesday trading, but we have turned completely around as Theresa May has suggested that she was willing to have cross party talks to come to some type of resolution for a Brexit agreement. If that’s going to be the case, then it puts a little bit more hope into the British pound, which of course we are seeing during the trading session on Tuesday.
Looking at the chart, you can see that the market has been consolidating between the 1.30 level on the bottom and the 1.3350 level on the top. From what I see based upon this candlestick, it looks as if we are still bouncing back and forth in this area. I like buying short-term pullbacks to give us an opportunity.