The EUR/USD pair fell during the Wednesday session, but got a bounce later in the day at the 1.2850 level in order to form a hammer. In fact, this pair suddenly looks bullish as we anticipate the Spanish budget coming out later today.
Even though we’ve seen trouble in the streets of a couple European countries, it looks like more than likely the Spanish will be forced to ask for a bailout soon. In a roundabout way, this is actually positive for the Euro. Because of this, we think a break of the highs for the Wednesday session should be a buy signal, but it must be said that above here we see quite a bit of noise until we get above the 1.33 level. Because of this, we will more than likely play the Euro against other currencies such as the Yen.
Written by FX Empire