The EUR/USD pair initially fell during the day on Wednesday, but found enough support at the 1.07 level to turn things around and form a nice-looking hammer. The hammer of course is a very supportive and positive candle, but there should be a significant amount of resistance at the 1.08 level based upon the previous support there. With that, we believe that waiting for resistive candle is the best way to go as we can search selling the Euro yet again. On the other hand, if we break down below the 1.07 level, the market should continue to go lower, perhaps reaching down to the 1.05 level.
