EUR/USD
The Euro rallied again during the day on Friday, as we continue to see a lot of volatility in this pair. At this point though, it looks very likely that the 1.15 level above will cause resistance, so it’s not until we break above that level that I would be comfortable going long. If we do break above there, then we could go as high as the 1.18 level. Otherwise, we will more than likely continue to consolidate in this area as people worry about Turkish contagion spreading into the European Union. The market looks likely to continue to be very difficult to deal with, so by all means keep your position size small if nothing else. If we break down below the bottom of the hammer from the Wednesday session, that could send this market much lower, probably predicated by some type of headline coming out of Ankara.
GBP/USD
The British pound try to rally a bit during the trading session on Friday, reaching towards the 1.2750 level before finding sellers again. I think at this point, the market looks likely to continue to go much lower, perhaps reaching towards 1.25 level if we cannot get some type of momentum going. I would not be a buyer of this pair until we break above the 1.28 level, something that looks like it might be a bit difficult to do. Beyond the usual risk off attitude that the market has, we also have to worry about the Brexit so this market is going to continue to cause issues. The market will continue to be one that you can sell rallies and, so I think it’s only a matter of time before that opportunity presents itself.
