The EUR/USD pair fell during the session on Wednesday, to form another negative candle in an already oversold condition. However, the candle did get a bounce later in the day to form a third hammer. This suggests that we will see a bounce coming soon, and as a result we are not short of this pair or the first time in what seems like ages. The bounce should see the pair moved to the 1.24 level, and it is at that point that we think resistance starts to creep back into the market. Because of this, we are waiting for bounce from which to sell. If we manage to break down below the 1.2150 level, we would sell their as well as it would show a pickup in selling again.
Written by FX Empire