The EURUSD pair initially fell during the course of the session on Tuesday, but found support just above the 1.09 level in order to form a hammer.

The hammer of course suggests that the buyers are returning to the market, so we can break the top of the range we think that the Euro will continue to appreciate over the longer term.

There will be a lot of volatility, but quite frankly the fact that the currency has a completely falling apart yet tells us that there are plenty people out there willing to bet on the long-term viability of the single currency.

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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