The EURUSD pair fell during the bulk of the session on Tuesday, but found enough support just above the 1.3325 level in order to bounce and form a nice-looking hammer. It appears that this market is starting find significant support in this general vicinity, and we do think that the 1.33 handle is probably about as low as this market can go right now.

On a break of the top of the hammer, we think that a short-term buying opportunity certainly does exist, and that the market will probably head to the 1.3450 level, and then possibly the 1.35 level.

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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