The Euro has initially tried to rally during the trading session on Friday, after we formed a couple of hammers. However, we broke through those hammers during the trading session on Friday, which of course is a very sign. Nonetheless, I still see significant support underneath than we have not change the fact that we were forming a bit of a “rounded bottom.” That is a very bullish sign, because it typically means that you are changing the overall trend. It’s a slow-moving pattern though, so I would not expect an explosive move to the upside, rather you will probably see some type of grind higher more than anything else. If we rally from here, I think that the market will probably go looking towards the 1.1450 level. If we were to turn around and break down below the 1.13 level, then we could see the market drop even further.
The British pound has had a very negative session on Friday, taking out the gains from Thursday as we found too much resistance at the 200 day EMA to continue going higher. With that in mind, it makes sense that we will probably continue to see a lot of volatility here, in a situation that has been explosive to say the least. This is after we had seen a significant amount of speculation on the Brexit being delayed. I think it’s only a matter time before reality smacks traders in the face though, as we continue to go back and forth and quite often based upon Twitter headlines which are used to manipulate the algorithmic trading machines out there. With that in the back of my mind, I realize that short-term back and forth trading is probably what we are looking at.
This article provided by NewsEdge.