Forex Strategy: EUR/USD Hammer Forms As Buyers Emerge
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- EUR/USD Technical Strategy: Pending short
- Hammer formation on hourly hinting at small bounce
- Psychologically significant 1.3700 handle offers resistance
The Euro has found some intraday buying support at 1.3650 alongside the formation of a Hammer candlestick on the hourly chart. While there has been confirmation of a possible bounce, from an ensuing up-period, the trend remains lower and suggests that a bounce should be seen as an opportunity to sell. Entries may be afforded by key resistance nearby at the psychologically significant 1.3700 handle, which is also the 50% retracement mark from the recent declines.
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Hourly Chart - Created Using FXCM Marketscope 2.0
--- Written by David de Ferranti, Market Analyst, FXCM
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