The Euro rallied significantly during the early hours of Tuesday. But the 1.07 level is an area that a lot of people have paid close attention to support and should now be resistant based on market memory. That being said, this is a market that I think will continue to be noisy more than anything else.
And as a result, there should be plenty of volatility and choppiness. The 1.06 level underneath is support, 1.07 is resistance so in the short term, I think we just go back and forth. Keep in mind that the European Central Bank is likely to cut rates later this year, and that’s exactly what we’re seeing priced in here.
