The EUR/USD pair broke down during the session on Tuesday, breaking the bottom of the shooting star that had formed on Monday. Because of this, we ended up going below the 1.07 level, and making fresh, new lows. Because of this, we believe that selling rallies will be the way to go going forward, and that the market is almost undoubtedly going to head to the 1.05 handle. In the short-term. Any rally at this point in time would have to be looked at with suspicion, and we believe that the 1.10 level above is the “ceiling” in this market.