The EURUSD pair broke higher during the course of the day on Tuesday, breaking the top of the hammer that had formed on Monday.

However, we see quite a bit of resistance above so even though this is a short-term buying signal, we are going to stand on the sidelines until we clear the 1.10 level above.

However, if we break down below the bottom of the hammer from Monday, we think that would be a selling opportunity.

Once we get above the 1.10 level, that could be a bit of a trend change as the market will more than likely reach towards the 1.14 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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