The EURUSD pair broke down during the session on Tuesday, slicing through the 1.35 handle with ease. That shows real weakness, and as a result we feel that the market should continue to go lower, probably heading to the 1.33 level before it’s all said and done.

Any rally on the short-term charts should be treated with suspicion, and as a result we would be more than willing to sell a resistant candle that appears after a slight bounce.

On the other hand, if we break down below the bottom of the range for the day, we feel that this market can be sold again.

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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