The EUR/USD pair rose during the session on Tuesday, but failed at the 1.38 resistance area in order to turn things back around and form a shooting star. The shooting star of course suggests that the pair is going to go lower, but we have so much in the way of support below that it’s difficult to trade that signal. Quite frankly, we feel that this pair could probably be avoided at the moment as we continue to weigh the significance of the 1.38 level.

We believe that the 1.37 level will be supportive as well, effectively making this an area that’s far too tight.

Content curiosity of FOREXCycle

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, 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.