The EURUSD broke higher during the course of the day on yesterday, testing the 1.10 level after the Federal Reserve suggested that perhaps the interest rates in the United States will remain low for a longer amount of time than anticipated. Because of this, we believe that the market will test the 1.10 level again, but we can not forget this fact that there are major issues in the European Union right now. With that, we are a bit hesitant to get involved until we get a clearer signal one way or the other. As of now,it’s better to stay on the sidelines.
The GBPUSD broke higher during the course of the session after initially falling on yesterday, as we sliced through the 1.50 level. In fact, the surge was massive and as a result we anticipate quite a bit of volatility in this market. However, as the US closes, we are dropping back below the 1.50 level, so right now it looks like the market is still trying to figure out what the US dollar is getting ready to do. With that, we recommend staying out of this market at the moment, as the volatility is too much.
The AUDUSD broke higher during the course of the session on yesterday, testing the 0.79 level. However, we found enough resistance in that general vicinity to withstand the bullish pressure. Alternately, if we get some type of resistive candle in this general vicinity that we are willing to sell. However, we do not have that as of now and we do recognize that the 0.80 level above is a bit of a ceiling, so we are waiting to see whether or not we get a sell signal again, and as a result will remain patient.
The USDJPY fell hard during the course of the day on yesterday as the Federal Reserve announced its monetary policy, suggesting that perhaps they will have to be patient for longer than anticipated about rate increases. With that, we think that there is still probably an uptrend in a fact, but we may have to be patient and wait for a supportive candle in order to start buying.
The NZDUSD broke higher during the course of the day on yesterday, breaking above the 0.75 level at one point. Because of this, we need to wait to see whether or not this area holds as resistance, and gives us a nice selling opportunity. As of now, we do not have the right resistive candle, so at this point of time we believe that this market will continue to be very choppy and volatile. We have no interest in buying, but certainly can’t sell. We will let the market come down for a couple of days before placing trades.