The EURUSD pair initially fell during the course of the day on Friday, testing the 1.08 level for support.

However, we turned back around to form a bit of a hammer, and that of course is a bullish sign.

Because of this, we believe that the market should continue higher, perhaps reaching towards the 1.10 level, and then perhaps the 1.1050 level.

We don’t know whether or not we are going to break out above the resistance of the 1.1050 level yet, but it certainly looks like the buyers are starting to take over again

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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