EURUSD fell initially during the session here on Thursday, but ended up forming enough positive momentum towards the end of the day to form a little bit of a hammer.

The fact is that the market essentially used trying to digest its next move in this region, and as a result we are still sellers though because we believe the long-term downtrend is well-founded.

However, we believe that the most important thing to pay attention to in this marketplace as the area between 1.28 and 1.30, as it is such a massive resistance barrier.

If we do rally from here, we are simply looking for a resistant candle somewhere in the general vicinity of that zone.

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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