As we opened the trading session on Monday, we obviously gapped lower in favor the US dollar during Asian trading, perhaps in reaction to the tax bill making significant gains through the US Senate.
The British pound initially went sideways during the day on Tuesday, and then broke higher, reaching towards the 1.2775 level. Above there, I think the 1.28 level offered resistance, so if we can break above there I think that the market could then go to the 1.30 handle.
The British pound gapped higher at the open on Monday, and then reached to the 1.2750 level.
The EURUSD pair shot like a rocket into the stratosphere after less than impressive US numbers came out during the early New York trading.
The EURUSD pair had a very volatile session on Wednesday, as we are trying to front run the European Union quantitative easing situation.
The GBPUSD pair initially fell during the day on Friday, and saw quite a bit of volatility after the jobs number came out in the United States less than anticipated.
The EURUSD pair broke higher during the session on Friday, clearing the top of both the Wednesday and Thursday candles after less than stellar US numbers came out.
After initially gapping higher on Monday, the EURUSD pair has fallen apart. This was a “buy the rumor, sell the news” type of situation when it came to the French elections, and this pullback has been absolutely brutal.
The British pound continues to march higher during the Monday session, and as you can see I have a trendline on the hourly chart showing that we have seen buying pressure again and again.
The EUR rallied during the day on Monday, but found enough resistance at the 50-day exponential moving average to turn around and form a less than spectacular candle.
