The EUR/USD pair fell below the bottom of the hammer from the previous day on Tuesday, and this of course is a massively bearish signal. The fact that we are closing below the lows on Monday suggests that we will be going lower.
It should also be noted that the top of the Monday and Tuesday candle was at roughly the 1.3000 level, and this suggests that there is a taunt of resistance at this area. With this in mind, we would be more than interested in selling the breaking of the Tuesday lows as it should signal a return to the 1.27 level before it’s all said and done.
Written by FX Empire