The EUR/USD pair tried to fall apart during the session on Tuesday, but as you can see the 1.3750 level offered enough support to push the market higher, and move it back enough to form a hammer.

This hammer suggests that the market is in fact going to go higher, and perhaps try to break above the 1.40 level again.

While that is a bullish sign, we recognize that the area above should be resistive, and as a result it’s going to be difficult to break out to the upside from here.

With that, we believe that staying flat in this market is probably the best route right now.

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, 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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