The EUR/USD pair initially fell during the course of the day on Monday, but bounced just above the 1.28 level. The resulting candle of course is a hammer, and because of that we feel that the market is probably going to move back towards the 1.30 handle in the short-term. We don’t expect any type of significant breakout from here, just that the market is going to grind sideways overall within the 200 pips consolidation area. It is not until we break above the 1.30 level that we feel comfortable going long in this market with any type of significant amount of money. However, that’s not to say that short-term scalp can’t be had.
