The EUR/USD pair fell during the session on Friday, but bounce back above the 1.37 level in order to form a nice hammer. This hammer of course is a bullish sign, but it appears that the euro is and quite ready to break down now because of it. On a break of the top of the hammer, we are buyers and aiming for the 1.38 handle. On a break of the bottom of the hammer, we feel that the market would show significant weakness, and could drift down to the 1.35 handle, although it looks less likely at this point.
