The EUR/USD pair fell during most of the day on Monday, but as you can see bounced enough to form a hammer. Because of this, we feel that the market is going to try to break out above the 1.30 level, an area that is significantly resistant. If we can get above there, we believe that this market will then try to head to the 1.32 region, and possibly as high as 1.3250 or so as there is a gap there. Ultimately, we believe that the Euro will continue to fall over the longer term, but it is without a doubt oversold at this point.
