There was a sense of nervousness in the market today with a lot of pairs going up and down not sure which direction to take. On the positive side, Eur.Usd and Gbp.Usd behaved in a manner predicted yesterday. Both pairs reached their targets and are currently retracing. A closer look reveals that....
This pair broke through the channel today and reached its fib target of 1.3109. Its currently retracing at the moment with a possibility of reaching 1.3200-1.3240. Look for bearish formation around that region before deciding to short the market. The bears will be after the low at 1.3026, this area is also where strong support can be found so be careful in going long after this point. The current fib target of this swing is 1.2955. |Do proceed with caution, this pair reacts violently to any news coming out. Keep in mind if the bulls take out the level of resistance stay away from shorting the market.
The bears took out the low at 1.5641 today and this pair is currently retracing. The bulls will probably take this pair to 1.5775 area before u-turning further south. They do have the ability to reach closer to the 1.5800’s. Either way I will be looking for short opportunities around that area. The fib target of the current swing is 1.5661 so expect a bounce here before continuing further south. Keep in mind this pair has fundamentals coming out tomorrow that can really influence this pair, so proceed with caution.