The EURUSD pair fell during the course of the day on Thursday, but as you can see found enough support below in order to bounce and form a little bit of a hammer. This is the second hammer in a row, so we believe that this market is simply waiting to see what the nonfarm payroll numbers look like.

Because of this, we think that this market could in fact bounce based upon the candlestick formation, but it’s probably going to end up being a short-term bounce at best.

We believe that rallies will offer selling opportunities as the market should head towards the 1.33 handle.

Editor’s Note: Equity investors/traders can use the Currency Shares Euro Trust (FXE, quote) ETF to take positions in the euro without a FOREX account.  The ETF looks to track the price of the euro (EURUSD), minus ETF fee. The fund seeks to reflect the price of the euro with the shares representing a cost-effective investment relative to investing in the FOREX market.

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