The EURUSD pair initially tried to rally during the course of the day on Tuesday but found the previous uptrend line as resistive, and as a result we turn right back around to form a fairly negative candle.

A break down below the bottom of candles should send this market looking for the 1.10 level, and then possibly the lows again.

I believe that the Euro should continue to soften overall as there is a bit of uncertainty when it comes to the future of the European Union itself.

With this, I am a seller of short-term rallies that show signs of exhaustion and of course a break down below the bottom of the range for the day on Tuesday.

Editor’s Note: Equity investors/traders can use the Currency Shares Euro Trust (FXE, quote) ETF to take positions in the euro without a FOREX account.  The ETF looks to track the price of the euro (EURUSD), minus ETF fee. The fund seeks to reflect the price of the euro with the shares representing a cost-effective investment relative to investing in the FOREX market.

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