Euro rallies against Sterling during the trading session on Wednesday

The Euro rallied a bit during the trading session on Wednesday, reaching towards the 0.88 level. That’s an area that has been resistance, and I think it will continue to be so. You can look at something like the stochastic oscillator to give you an idea as to which direction we should be trading, and I believe that the 0.88 level above is going to continue to be very difficult to overcome. I look at the 0.87 level underneath as support, so I will continue to trade this market in small positions and simply go back and forth until we get some type of impulsive move. As soon as we get an impulsive move, then we can start to put serious money to work, but right now I think there are so many external factors in this market that will continue to be an issue, so I think that the market participants will continue to be very cautious and very quick to jump in and out of the market.

If we do break above the 0.88 level, the market could then go to the 0.89 level above, which of course has been important in the past. On the other side of the equation, if we break down below the 0.87 level, the market will more than likely go down to the 0.6 level, which has been very important in the past, and has attracted a lot of attention.