The EURUSD pair rallied during the day on Tuesday, bouncing above the 1.06 handle.

However, we think this is simply a bit of a “dead cat bounce” of sorts, and therefore we are waiting for resistant candle above in order to start selling the Euro yet again.

With the jobs number coming on Friday, this could be a bit of position squaring, but quite frankly we feel that unless the jobs number is absolutely horrible, we should get a resistive candle that we should start selling soon. We still have a target of 1.05 in this market.

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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