The EUR/USD pair initially tried to fall during the course of the session on Monday, but as you can see found enough support below to turn things back around and form a hammer. We are below the 1.20 handle, and that of course is a very negative sign as well. However, when you look at the longer-term charts the 1.20 level is massively supportive on the monthly charts. With that, it’s likely that the market will be very erratic in this area. If we can get a move above the 1.20 handle, it might just be worth our while to start buying.
