EUR/USD & GBP/USD
If you think that currencies have been volatile, you haven’t seen anything yet. We are likely to see more volatility and read about “currency wars” in the following months. These two charts are extremely powerful and suggest both cross rates are at an extreme low volatility period when compared with the past few decades. Volatility is cyclical and low volatility is usually followed by high volatility and vice versa. Both EUR/USD and GBP/USD are getting closer to a major breakout that will be followed by multi-month trend periods. These are very long-term charts and are presented to show that actually we are at a low volatility period. Levels to watch in the long-term for EUR/USD: (resistance: 1.41, support: 1.21) for GBP/USD: (resistance: 1.65, support: 1.50).