The EURUSD pair initially fell during the day on Monday but found enough support below to turn things around and form a hammer.

It now looks like we are trying to break above the 1.1050 level, and as a result if we can get above there we feel that the market could go much higher.

After all, the weekly candle from the previous week was a hammer, and the top of it is at the 1.1050 level.

So above there, we are buyers. We could pull back from here, but quite frankly at this point are not interested in selling.

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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