The EUR/USD pair rose during the session on Tuesday as traders bought into the notion that the European Central Bank was going to ride to the rescue. However, any easing out of that central bank will ultimately where down the value of the Euro, and as such the downtrend is far from being over. It should also be noted that the 1.23 level has offered enough resistance to get the market to close back down near that level, and as such we think that it will continue to struggle going higher.
We still look at the Friday shooting star as our signal. This candlestick seems to tell us that this pair once the go lower, perhaps back down to the 1.2050 area. As we break lower, we will start selling Euros as well. As for buying the Euro, there simply no reason to do it until we break above the 1.27 level.
Written by FX Empire