The Euro pulled back a bit during the trading session but continues to find support underneath as we formed a supportive candle for the second consecutive day. Because of this, I think that it’s only a matter of time before the market turns around and rally towards the 1.15 handle again. We obviously have a lot of buyers underneath, and when you look at the longer-term chart you can make out a bit of a “rounded bottom” be informed. That’s a slow pattern though, so you’re going to need to be very patient to enjoy your profits. I believe that the 1.13 level underneath is massive support, so if we were to break down below it that could negate the entire pattern. Above we have the 200 day EMA, which has offered resistance previously. Breaking above that on a daily close that is convincing could send fresh money into this market. Until then, I think we are just going to continue to grind higher overall.
The British pound exploded to the upside as people are starting to bet that perhaps the Brexit will be delayed. We reached towards the 200 day EMA, which is a right at the 1.30 level. At this point, I think that buyers will probably come in on dips, because of the strength of the move does not seem to be abating. With that being the case, if you are patient enough you may be able to pick up the British pound at lower levels. It does of course makes sense that the 200 day EMA offers resistance, because once you break above there the entire trend of the currency will have changed. I suspect that there is significant support near the 1.29 level.
This article provided by NewsEdge.