EUR/USD
The Euro initially tried to rally during the day on Friday but then rolled over as we got a very strong jobs number out of America. We are testing the bottom of a couple of hammers though, so this point I think there’s probably buyers coming sooner rather than later. The 1.15 level should offer support, but if we break down below there, then I think the pair will probably go down to the 1.13 level. If we break down below there, then the 1.12 level would be targeted. Currently though, I think a bounce is probably somewhat likely, but of course it will come down the US dollar strength in general. Pay attention other currency pairs with the USD and them, if we start to see overall across the board strength, this pair will obviously break down.
GBP/USD
The British pound trying to rally during the day but found trouble at the downtrend line yet again to turn around of form a massive shooting star. This suggests to me that we are not ready to break out, and that we will probably pull back towards the 1.28 level again. Below there is the 1.2750 level which is massive support as well. If we can turn around and break above the top of the shooting star, that would be an extraordinarily bullish sign for the British pound, probably moving right along with some type of headline confirming either the Brexit getting ready to be signed, or some type of good news. If we do break above there, it’s likely that it will become more of a buy-and-hold situation. I think that happens eventually, but obviously we probably need to pull back a little bit first.
