EUR/USD
The Euro rallied significantly during the trading session on Friday as the 1.1450 level has offered a significant amount of support again. Ultimately, the market looks as if the 1.1450 level will continue to be respected, and of very bullish daily candle that we have formed is a very good sign. I think at this point, the Euro is trying to recover overall, showing signs of life as it had been oversold. I suspect that we will go looking towards 1.16 level, but it may take some time to get there. Look at short-term pullbacks as potential buying opportunities as we have seen a lot of technical damage done as of late. However, if we break down below the daily low from Friday, that would be a negative sign and we will probably grind up lower by another hundred pips or so.
GBP/USD
The British pound rallied during the trading session on Friday, showing signs of life again. It looks as if the market is trying to pick itself up a little bit, and we continue to see a lot of volatility because of the headlines involving the Brexit. The Brexit headlines that are negative for the pound continue to offer quite a bit of value for traders in general, and it looks as if we will continue to see a lot of value hunting in general. I believe that the market is respecting the 1.30 level, so it is only a matter of time before buyers would come in if we reach towards that area. While not an impressive day in its scope and range, the fact that we stabilized after this massive selloff is a good sign that the value hunters are going to return and continue to pick us up here.
