The EUR/USD pair initially tried to rally during the trading session on Wednesday, testing the 1.17 level for resistance. We turned around to fall, and it looks likely that we are going to continue to drop from here as although we had bounced significantly from the 1.15 handle, it’s obvious that the market has struggled to keep gains lately. If course is very thin trading, as Independence Day celebrations are going on in the United States, but at the end of the day it seems as if the Euro cannot hang on to gains against the greenback, as there are so many concerns out there about the trade wars currently heating out. I think that the market is going to make another move towards the 1.15 level underneath which of course is important, and therefore I remain bearish, but I also recognize that it is going to take something special to break down through that area.
The British pound rallied a bit during the trading session on Wednesday, as we continue to see this market trying to tread water and gain traction. I believe that it is only a matter of time before we reach towards the 50 day EMA, or perhaps the 1.33 level and find sellers. I think there’s far too much in the way of negativity out there to keep this market from picking up major support, so I prefer selling exhaustive candles on short-term rallies as we seem hell-bent on trying to not only reach towards the 1.30 level, but perhaps even try to break down through there. That will be easy though, so it will probably take several attempts to break down this market. If we were to break above the 1.35 handle, then I think it turns everything around in this pair.
This article provided by NewsEdge.