EUR/USD

The EUR/USD pair had a volatile session during the trading session on Wednesday but then turned right back around. Ultimately, we ended up forming a shooting star on the daily candle, and I think this shows that we are going to continue to be choppy in general, but I still believe that there is a significant amount of buying pressure underneath. This will be especially true if the US Congress can’t get the tax bill together, and that is a very distinct possibility with the ridiculous a lack of work ethic. If we can break above the top of the shooting star, that’s a sign that we go much higher. Alternately, if we break down below the 1.18 handle, we probably go down to the 1.17 level underneath.

GBP/USD

The British pound continues to be very noisy but we have broken out to the upside after faith in a potential deal has been part of the market. I don’t know if I believe that though, because Teresa May has said that no deal has been agreed to. I think we will continue to see a lot of noise, but obviously the buyers are starting to win this argument. I have been a bit bullish anyway, so I think that technically speaking, this works out okay for me anyway. I believe the pullbacks will continue to be supported, and that the 1.3333 level should be a bit of a floor. It suggests to me that we are going to go to the 1.35 handle, and then eventually the 1.3650 level after that. I’m not interested in shorting this market until we break down below the massive hammer that formed on Tuesday.