The EURUSD pair initially fell during the day on Thursday, but as you can see found support at roughly the same place it did during the Wednesday session. With that, we found the day forming a hammer for the second day in a row, and that means that more than likely we will bounce.

Are break above the top of the two hammers, we think this market will more than likely head to the 1.3450 level, and possibly even as high as the 1.35 handle.

We would expect significant selling pressure up in that region though, so this is a short-term buying opportunity at best.

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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