I believe that this market is still very bullish in general, but there is obviously quite a bit of volatility just waiting to happen as volume dries up. When I look at the EUR in general, it does look as if it is trying to go higher, but I also recognize that the volatility will be high due to lack of trading volume, and of course headlines coming out of the negotiations between Brussels and London. Longer-term, I believe that the market participants will be much more comfortable with owning the euro over the pound, as there is more stability in the European Union.
Longer-term, I believe that the 0.90 level will be targeted, and a break above there should send the market to the 0.93 handle after that. I believe that the market will continue to find plenty of buyers on these pullbacks, as they offer value just waiting to happen. If we were to break down below the 0.88 handle, then the market could breakdown. The 0.8750 level is the bottom of the supportive region, and I think we will continue to see people jump into this market based upon value, and of course when we get the certainty necessary for longer-term investment time traders to be comfortable, we will continue to see money flow into this market. If we did breakdown, I believe that the next major support level is closer to the 0.86 handle. Overall, I believe that the buyers continue to be attracted to this market.
EUR/GBP Video 22.12.17
This article was originally posted on FX Empire