EUR/USD

The EUR/USD pair went back and forth during the course of the session on Thursday, forming a fairly choppy and neutral candle. This tells me just how difficult this pair is at the moment, and as a result I think we are going to continue to see downward pressure overall, but it’s not going to be a straight line down to the 1.1150 level, which I think is where we are heading. I also recognize that the downtrend line on the chart suggests that the dollar pressure continues, so it’s not until we break above there that I think that the market could go higher. Ultimately, this is a market that I feel is very difficult to deal with, and perhaps probably best left alone.

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GBP/USD

The British pound fell during the course of the session on Thursday, but as you can see we have quite a bit of support just below, and as a result the 1.2850 level is the absolute “floor” as far as I can see, and as a result I believe that a break down below there would be very bearish and perhaps reach down to the 1.25 level below. Ultimately, I think every time we rally at this point in time, exhaustive candles will be selling opportunities as well. Remember, we are still punishing the British pound for the vote to leave the European Union, and with that I have no interest whatsoever in buying this market, because quite frankly there are too many reasons the think that the British pound will continue to go lower.

Ultimately, I think that short-term trading is about the only thing you can do until we get below the 1.2850 level, so with that this is a market that you will have to look to short-term charts, but regardless, there is no way I’m buying.

(Click on image to enlarge)