EUR/USD and GBP/USD Forecast
The Euro fell hard during the trading session on Thursday, reaching down to the 1.12 level which is crucial support longer term. I believe that the market continues to stay within the consolidation area that we have been in for some time, which features the 1.12 level as support, and the 1.15 level above as resistance. The last couple of days has been very volatile and sideways, so I think at this point we are trying to build up a base.
Ultimately, the Friday session of course will feature the jobs figure on the United States and that will have a massive effect on what happens with the greenback, which of course moves the Euro. I do favor the upside, but if we were to break down below the 1.1150 level, then we could break down to the 1.10 level. That being said, Friday is going to be noisy as per usual.
The British pound fell hard on Thursday, closing towards the bottom of the range. However, it really doesn’t matter at this point as we continue to see massive support at the 1.30 level underneath, with the 1.3350 level above causing significant resistance. This is a market that has been stuck in a range while we continue to get a lot of headlines coming out of the United Kingdom. The Brexit nonsense continues, and therefore we will continue to see a lot of volatility. If we were to break down below the 1.30 level significantly, then we will probably go looking towards the 1.28 level as “a reset” at this point. All things being equal though, I think we will stay within the range and therefore I believe there are buyers underneath.