The Euro has had a wild ride during the trading session on Friday, which is typical of a Nonfarm Payroll Friday. I’ve noticed that typically we go back and forth only to settle nothing. We are basically where we started, and therefore it looks as if the 1.15 level is going to offer a bit of support. That is the bottom of the consolidation area that we have seen for some time, and I think now that if we can break above the top of the candle stick for the Friday session, we will probably start grinding our way towards the 1.17 level above, possibly the 1.18 level after that. Alternately, if we break down below the 1.1450 level, then we may see further weakness. I believe that the market is showing that is trying to stand its own ground here, and it’s only a matter time before the buyers get involved.
The British pound rallied rather significantly during the trading session on Friday, using the 1.30 level as support and it rally all the way to the 1.3125 level. That’s an area that has been resistance in the past, so it’s not a surprise it we stopped there. However, I think short-term pullbacks offer buying opportunities in this pair, and once we clear that level we will probably go looking towards 1.32 level, and then eventually the 1.33 level. This is a market that of course has been shaken by Brexit headlines, but at the end of the day every time we pull back rather drastically, it ends up being a buying opportunity. I think that continues to be the case, as value hunters find the British pound “cheap.”
This article provided by NewsEdge.