The EURUSD pair initially fell on Tuesday, but found enough support underneath to bounce a bit and reach towards the 50-day exponential moving average.

I still think that there’s a lot of resistance just above, so on the first signs of the short-term resistance and exhaustion, I’m willing to take a small position to the downside.

I believe that the 1.05 level underneath is massively supportive, so it is going to take a lot of work to break down below there.

Nonetheless, I have no interest in shorting this market anytime soon.

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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