The EURUSD pair initially rose during the day on Tuesday, but turned back around to form a shooting star.
The shooting star of course is a very negative sign, but as we have recently broken above resistance, it makes sense that the market will pullback in order to build up enough momentum to continue going higher.
If we can break above the top of the shooting star from the Tuesday session, we would be buyers.
On the other hand, if we pullback and find support below would be more than reason enough to start going long, as I see a significant amount of support down to the 1.14 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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