Euro falls against British pound during Monday open

The Euro has broken down a bit against the British pound during trading on Monday, reaching just below the 0.88 level underneath, which is the beginning of significant support. I think that the market probably continues to go lower, but should find support underneath, somewhere near the 0.8770 level. I think that the market will continue to show plenty of volatility and choppiness, but ultimately I think that the overall consolidation will probably win the day. If we did breakdown below the 0.8770 level, the market probably goes down to the 0.87 handle.
Otherwise, we could bounce from here and go looking towards the 0.8850 level, an area that has caused a bit of resistance. I think in the overall attitude of this market, traders will look for back and forth opportunities as we have been so tight in our trading range of the last several days. I think that longer-term we are probably looking at more of an uptrend, but that doesn’t mean that it will be easy to deal with, and I think that it is only a matter of time before we go back and forth. If we get a little too far to the downside, we will bounce, but of course if we get a little too far to the upside, we will fall. This is probably one of my favorite markets to scalp currently.