The EURUSD pair initially tried to rally during the day on Friday, but then broke down below the 1.06 handle during the day.

This is a very negative sign, and I believe that we will eventually reach towards the 1.05 handle.

That’s an area that’s massively supportive, and I believe that in the meantime we will more than likely see sellers on rallies as we have finally broken through the significant consolidation that we spent most of the week being involved in.

Closing towards the bottom of the range for the session also shows quite a bit of negativity as well.

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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