The EUR/USD pair initially fell during the session on Friday, but bounced enough to form a hammer. This hammer suggests that we are going to continue to grind away in this general vicinity, and as a result we are a bit cautious about selling. We think that the market is relatively negative overall, but do see that a break above the top of this hammer probably since this market looking for the 1.39 level in the meantime. Short-term buying opportunity seems to be in this market’s future at this point in time, but a break of the bottom of the hammer would be a very negative sign.
