The EUR/USD pair fell during the session on Friday, but as you can see found support at the 1.33 level again, and bounced yet again to form the third hammer in a row. We are approaching the downtrend line on the weekly chart, and believe that the 1.34 level will be resistance as well. Because of this, we think there’s a real fight on our hands up in this area, and as a result will be watching this downtrend line with interest. On a move above the 1.34 handle that includes a daily close, we would become buyers of the Euro appear. On the other hand, if we managed to break down below the 1.33 handle, with all of these hammers that would be a very negative sign.
Written by FX Empire