The EURUSD pair gapped lower at the open on Monday, and bounced off of the 1.10 level during the day.

With this, the market looks as if it is trying to break down but there is a significant amount of support in this area.

With that being the case, I think that the easiest way to trade this market right now will be to simply sell short-term rallies that fail to show any real conviction.

An exhaustive candle on a short-term chart might be reason enough to start selling again and again, as it looks very likely that we are trying to build up enough momentum to finally break through the 1.10 level for real.

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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