The Euro initially tried to rally during the day but turned around and fell rather hard towards the 1.15 level. This is an area that is extraordinarily important though, so we will have to see whether it holds or not. If it does, perhaps an entry to the upside on the short-term charts might be the best way to play this market. However, if we get a significant break below that large figure, I think at that point the market will probably unwind a bit drastically. This is a market that will continue to be very noisy, but we had consolidated for quite some time just above this level and reaching towards 1.18 level, so until proven otherwise, I have to assume that continues to be the case in this market.
The British pound has been very noisy during the trading session on Wednesday, initially breaking above the 1.30 level that giving back all of those gains. We ended up forming a somewhat neutral candle, perhaps even a potential shooting star, but at this point there is an uptrend line just below. There is also a major downtrend line underneath that should now be supported, so I think there is the possibility that we can get the buyers involved again. However, if we break down below the lows of the Wednesday session, that would be extraordinarily negative and probably send this market looking towards 1.2750 level. This is going to be very noisy, and with the jobs number coming out on Friday, I anticipate that isn’t going to change anytime soon, let alone all those headlines involving the Brexit. Overall though, I do believe that value hunters continue to look at the British pound with interest.
This article provided by NewsEdge.