In this video, the Trader Guy looks at the currency pairs EUR/USD and GBP/USD for the June 15th session.
EUR/USD — As you can see, we rallied quite a bit during the day here on Wednesday, but found 1.13 to be too much. We turned around and after that the Federal Reserve statement. It looks like they are sticking to their guns and that affects the market. I think that this is going to be an interesting pair for the next couple of days because what I look at here is the potential of one of two things to happen. Either we get a bounce with a long-term target of 1.15. But if we can break down, we could go as low as 1.08, maybe 1.0760 or so to fill the gap below. This is going to be a very interesting trade. Ultimately, I think that we stay within the consolidation over the last 3 years with 1.15 at the top and 1.05 at the bottom.
GBP/USD — We had an interesting day as well. We broke higher back into this consolidation area and then turned around to form a shooting star. A breakdown below the bottom of this shooting star sends this market looking for the 1.2650 level. That is an area where I think is significant support. If we can break down below the lows here, then we go lower. There is a BOE statement today and that of course will have a massive effect on the British pound itself. So, we will have to pay attention to what this pullback says. But we have parameters here. A break above the top of the range for the day is bullish and could go as high as 1.3050. A breakdown below the bottom of the day is bearish and 1.2650 is the first area and a little bit below there, the flood gates open.