Euro falls against Sterling during the week again

The Euro fell during the course of the week reaching towards the bottom of the hammer from the previous week, showing signs of major softness. I think that if we break down below the bottom of this weekly candle, we will probably reach down to the 0.86 handle below which has been support recently. I believe that we are starting to see the trend trying to change, but I also anticipate that the 0.86 level should be massive support, an opportunity for another bounce. I think that a break down below this level will unwind this market drastically to go looking towards the 0.83 handle, something that looks like a serious threat right now. I believe that the market should continue to find reasons to show signs of volatility, but this last couple of candles tells me just tell soft things can be.

The alternate scenario of course is that we break above the hammer from the previous week, which would be a very bullish sign. However, I think it’s obvious that the 0.90 level above is massive resistance, and therefore I think that the market will be hard-pressed to break out above there, at least in the short term. If we did do so though, it’s likely that the market would go much higher, continuing the longer-term uptrend. However, right now it looks as if the sellers are a bit more stringent and ready to jump in and put money to work.

EUR/GBP Video 21.05.18