The EUR/USD pair fell during the session on Friday but found a bit late in the day in order to form a hammer. This hammer was formed directly after a shooting star, so it does suggest to us that we probably have more confusion than anything else. This would make sense, as the market places have all been erratic to say the least over the last several months.
The Euro continues to be hampered by the Spanish debt issues, and as such we find it difficult to go long of this pair even though we can see an argument to do so at this moment in time. We think that trading this currency pair will be short-term based at best, and as such we highly recommend keeping tight stops. In the meantime, we think we go sideways for the next day or two.
Written by FX Empire