The EUR/USD pair rose after initially falling during the session on Tuesday, forming a hammer right at the 1.3550 support level. Because of this the Euro should continue to strengthen and we feel that the move is probably going up to the 1.37 handle, or just below there. That being the case, on a break of the highs we are bullish but recognize the fact that this is more or less going to be a short-term trade than anything else. All things being equal, we will not sell this pair until it breaks below the 1.35 level on a daily close.
