The Euro drifted a bit lower to start out the day on Tuesday, but then skyrocketed towards the 1.1725 handle before rolling over again. I think this is going to be indicative of the market, as there are far too many headlines risks out there for the Euro to be an easy currency to trade. I think that currency markets in general are going to be rather difficult, and the Euro is where a lot of high-frequency trading goes to work. As long as that’s the case, it’s very likely that we will see choppiness in this market. Beyond that, on the daily chart I recognize that we are in a symmetrical triangle, and of course have support at the 1.16 level underneath, and the 1.1750 level offering resistance.
This is a market that you will need to trade from short-term perspective, as it will continue to be extraordinarily noisy, and therefore extraordinarily difficult. I believe that the market continues to see headlines risks coming out of the Brexit and of course the negotiations that the European Union will be involved in with the United Kingdom, so I believe that we are going to have a noisy couple of weeks regardless.
A range bound system should be employed in the markets, as it seems as if they are not ready to go anywhere quite yet. Because of this, I think that scalping may be the way to go.