Euro falls drastically against the British pound as Italy remains front and center

The Euro fell against the British pound, breaking towards the 0.8725 level below which has been a bit supportive. I think this market could very well break down significantly, but we may need to bounce for a little bit before doing so, as it could give us an opportunity to build up enough momentum to finally break down. If we break down below the 0.87 level, the market is more than likely going to go down to the 0.86 level after that which has been a major support level. This makes sense, because the Euro is one of the few currencies out there that has even more bearish pressure attached to it than the British pound.

I believe that the market continues to be very noisy, but now I believe that selling rallies will be the only way to go in this market, as the 0.88 level looks to be a major ceiling in the market. I would be surprised if we broke above there, as it is very stringent according to the last several sessions and attempts. Ultimately, I do think that this market probably breaks down significantly, because even though the British pound has its own issues and of course we have the concerns about the “Brexit”, the reality is that the European Union has a lot of underlying issues to worry about.