The EURUSD pair fell hard during the session on Thursday, but turned back around and bounced hard enough to form a beautiful looking hammer.

The hammer is fixated on the 1.26 level, and that being the case the market could very easily bounce from here.

However, we still see this is a very negative market and therefore are not interested in buying it and look at any bounce as a potential selling opportunity.

We still believe that the markets going to head down to the 1.25 level, and until we break out above the 1.30 level, we have no interest whatsoever in buying.

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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