The EUR/USD pair initially fell during the session on Tuesday, but found enough support below to turn things back around and form a hammer. This hammer suggests that the market is ready to go higher, perhaps testing the 1.37 level. We don’t think that the market will go much higher than that, as there is a significant amount resistance in that area. In fact, the resistance area extends all the way to the 1.3750 level, and it is not until we get above there that we feel comfortable taking a longer-term long position.
