EUR/USD
The Euro fell during trading on Wednesday, as we awaited the Federal Reserve announcement. Quite rightly, there’s not much expected out of that so unless or some type of shock I suspect that we will continue to trade within the symmetrical triangle that I have marked on the chart. That being said, if we can break out of it to the upside then I believe that the market probably test the 1.1750 level, and if we can clear there we should then go to the 1.1850 level. Otherwise, if we can break down below the 1.16 level, the market will probably reach down to the 1.15 handle. That is a major support level, so it’s only a matter of time before buyers would return at that point from what I can tell.
GBP/USD
The British pound has done a lot of shopping around during the trading session on Wednesday, as you can see on the daily chart. It’s not a huge surprise though, because we have the Bank of England statement coming out today, and although we expect an interest rate hike it’ll be interesting to see how they word their overall outlook of the economy. That could have a major influence on where we go next. The 1.30 level underneath begins significant support down to the 1.29 level, which I believe will continue to be the “bottom” of the market. Overall, I think that a break down below there could send this market to drastic levels underneath. I think it’s more likely that we will bounce though, so I’m looking for a short-term pullback to give me an opportunity to go long of this pair. If we can break above the downtrend line that I have marked on the chart, I think we then go to the 1.35 handle, followed by the 1.40 level.
