The EURUSD pair initially gapped lower at the open on Monday, mainly as a knee-jerk reaction to the Parisian terror attacks in our opinion.

However, we feel that gap and then ended up forming a relatively negative candle. At this point time, if we can break down below the recent low, this market should then head to the 1.06 handle, and then the 1.05 handle.

We think rallies will be selling opportunities as well, as breaking below the bottom of the uptrend line recently of course was a very negative sign in this market.

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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