EUR/USD
The Euro has pulled back a bit during the trading session on Tuesday, slicing through the 200 day EMA but has bounced back above it. I think that the 1.1350 level continues to be an area of interest, so it’s not a huge surprise that we bounce from there. If we are going to continue to go higher, and we very well could, this could be the launching area for a move towards the 1.1450 level. Even if we do break down through here, I do believe that the market will have plenty of support underneath, so I would be interested to see whether we could get a “higher low” going forward. Ultimately, this is a market that I think gives us an opportunity to pick up a bit of value on these dips as I believe we are trying to change the overall trend.
GBP/USD
The British pound try to rally during the trading session but failed at the 50 day EMA, and at the 1.28 level. Now that we have rolled over, I think we probably go a little bit lower, so the question at this point is whether or not we can turn around and break down below the 1.25 level. I think we do go lower from here and a short-term selling opportunity is probably presenting itself but I don’t think that we break below the 1.25 level in the short term. The real question is whether or not we make a “higher low” just as we may be able to do so in the EUR/USD pair. Ultimately, I think this could give us an opportunity to buy at lower levels if you are a bit more patient, but always we need to keep the Brexit in the back of our minds.
