The EURUSD pair rallied on Monday, as we continue to see plenty of volatility.

I believe that the 50-day exponential moving average, pictured in red on the chart, will continue to be resistance. We are in a longer-term downtrend, and there are a lot of concerns with the EUR now.

I believe that the market will reach towards the 1.05 level again to try to break down, so I’m looking for exhaustion above to take advantage of value in the US dollar.

It is not into we break above the 1.0750 level that I feel comfortable buying the Euro

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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