The Euro rallied significantly during the trading session on Thursday, breaking towards the 1.16 level. Ultimately, the market looks as if it has found significant support from a couple of days ago, as we formed a perfect candle near the 1.15 handle. There is a bit of noise just above though, so I think that we probably get a short-term pullback on smaller timeframe charts that we can take advantage of. If we can break above the 1.16 level, then I think the market probably goes looking towards the 1.17 level above. This is just shy of the resistance above at the 1.18 level. The market had been consolidating for quite some time earlier this year, so I think it’s only a matter time before we reach towards the top of it again. The US dollar got hammered during the trading session on Thursday, as gold was up over $30. It looks as if the CPI miss during the day really got things going.
The British pound had a volatile session, breaking above the 1.32 level before pulling back a bit. At this point, I think that the 1.3125 level underneath is support just waiting to happen though as it is previous resistance. If we can break above the top of the candle stick for the trading session, the market should continue to go even higher. Ultimately, I think a pullback from here is going to be looked at as a value play, and I believe that the 1.30 level should offer a bit of a “floor” in the market. As the British pound has shown us more than once recently, there are plenty of larger traders coming in to pick up the Sterling when they get a chance.
This article provided by NewsEdge.