Euro falls significantly against Sterling on Tuesday

The Euro fell significantly during the trading session on Tuesday against the British pound, reaching towards the 0.8725 level. There is a significant amount of support down at the 0.87 level, and of course any significant amount of resistance at the 0.88 level after that. I think that the market is likely to go back and forth in the short term, and the market should be traded in a range bound manner. The stochastic oscillator is crossing in the oversold area, so it’s likely that we will see buyers jumping into this market to push it back towards the 0.8785 level. I think that we will continue to see a lot of this noise in the market, mainly because we have the negotiations continuing between the United Kingdom and the European Union.

Ultimately, I think that the market will be very noisy in the foreseeable future, but if you are nimble enough you can take advantage of this marketplace as it continues to be somewhat reliable. I wouldn’t look for something major, I would simply look for an opportunity to take advantage of a roughly 75 pip range that has been playable for months. If we break below the 0.87 handle, then the market could unwind to the 0.86 level. Otherwise, if we can break above the 0.88 level, the market should then go to the 0.89 level after that. Pay attention to this market, it could give us an opportunity as to where we are going to go longer-term. In the meantime though, be nimble and go back and forth.