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The EUR/USD pair tried to rally during the session on Tuesday, but only formed a shooting star suggesting that the buyers simply aren't stepping in at this point in time. This makes sense, the European Union has done almost nothing to alleviate the issues there, and as such we think that the 1.25 level will in fact be overly resistive for this market.
A break below the 1.23 level suggests to us that this market continues much lower. In fact, we think the 1.20 level will still be tested and also have seen flags in the past that suggests were going to the 1.15 level. We still believe this, and think that this rally is just another bout of hope for some kind of magic bullet out of the ECB. Obviously, every time this pair has rallied over the last year or two has been an opportunity to sell - So why would this be any different?