The EURUSD pair fell during the bulk of the session on Wednesday, with that, we feel that the market forming the hammer at this point suggests that the 1.37 level will certainly continue to offer support, and as a result we feel that we could very well break higher. A break above the 1.3750 level could send this market back towards the 1.39 level.

If we did break down below the bottom of the hammer though, we feel this market would go to the 1.35 handle as it would break down significantly.

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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