The EURUSD (FXE, quote) pair fell during most of the session on Tuesday, but found the 1.36 level supportive yet again. Because of this, it appears that the market is ready to grind sideways, as this area although supportive, isn’t necessarily a major support area.

Ultimately though, we believe that a bounce from here would probably find quite a bit of resistance at the 1.37 handle, or perhaps accelerating bearishness below the 1.36 handle.

At that point time, the market should go down to the 1.35 level, where we see even more significant support.

As far as buying is concerned, we have no interest in going that route until we get above the 1.3750 handle.

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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