The EUR/USD pair fell during the session on Wednesday, but found enough support underneath to form a hammer. It looks as if the pair is going to consolidate between the 50-day exponential moving average and the 100-day exponential moving average. Because of this, the market looks very likely to bounce from here, perhaps reaching towards the 1.0750 level above. If we break down below the bottom of a hammer, that of course is negative but I believe that short-term back and forth trading will continue to be the way forward currently as we aren’t looking at a decisive market.
Written by FX Empire