The EURUSD pair fell slightly during the course of the session on Wednesday, but remains within the hammer that had formed on Tuesday.

Because of this, we could get a bit of a bounce but quite frankly we think there is more than enough resistance above at the bottom of the uptrend line to keep this market lower.

With that being the case, we believe that the EUR/USD pair is going to reach towards the 1.06 handle, and then eventually the 1.05 handle.

At this point in time, there is no way for us to justify buying this pair.

Editor’s Note: Equity investors/traders can use the Currency Shares Australian Dollar Trust (FXA, quote) ETF to take positions in the Aussie dollar without a FOREX account.  The ETF looks to track the price of the Aussie dollar (AUDUSD), minus ETF fee. The fund seeks to reflect the price of the Aussie dollar (AUDUSD) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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