The EURUSD pair initially tried to rally during the course of the session on Wednesday, but then turn right back around to form a shooting star.

The shooting star of course is a negative sign and could very well send this market looking for the 1.12 level again.

Keep in mind that the ECB has an interest rate announcement coming out during the day, so expect a lot of volatility.

At this point in time, the market will probably wait until after that announcement before making a true decision. With this being the case, I’m on the sidelines.

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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