The EURUSD pair initially fell during the course of the session on Friday, but found enough support near the 1.09 level to turn things back around and form a hammer.

However, the hammer is sitting just below the 1.10 level, which of course has been massively resistive.

We think that the market could go to the 1.12 level if we break above there, but it is going to be very choppy all the way to that level.

On the other hand, if we broke down below the bottom of the hammer, we feel that this market then falls back to the 1.08 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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