The EURUSD pair did have a bullish day during the day on Tuesday, breaking above the 1.12 level.

While this is a bullish sign, the reality is that it’s not until we get above the previous uptrend line that we can take the breakout serious.

I’m looking for an exhaustive candle still, and a move back below the 1.1150 level to start shorting. As far as buying is concerned, we have to get above that trend line for me to do so.

With this, expect quite a bit of volatility but given enough time I do think that we turn around.

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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