Euro falls against Sterling on Monday

The Euro continues the chop around against the British pound, as we have a lot of noise out there due to the negotiations. The market continues to focus on headlines coming out of both London and Brussels, and of course Frankfurt. I think that there is a lot noise in this market just waiting to happen, so it’s difficult to get overly excited about any particular move. I think the pain attention to the stochastic oscillator will continue to be the best way to trade this market. I believe that a break down below the 0.8780 level could send this market down to the 0.8725 level again, but any sign of a bounce will probably have the market testing the 0.8825 handle again.

There are easier currency pairs a trade right now, unless of course you are into short-term scalping. If you are short-term scalper, this might be the perfect currency pair. However, you need to have a short-term range bound strategy to take advantage of what we have seen. Based upon the impulsive move to the upside, I would assume that the 0.88 handle holds as support, but you must always keep an open mind going into a situation and recognize when it’s time to get out. While I anticipate buyers just underneath, you can’t count on them.