The EUR/USD pair fell initially during the session on Wednesday, but as you can see found enough support in order to form a hammer. This hammer was pressing up against the downtrend line of a larger descending triangle, but having said that it’s obvious that the market is trying to find a reason to breakout to the upside. If we get a daily close above that descending triangle downtrend line, at that point time, we feel that this market is ready to breakout and go much higher. As far as selling is concerned, if we managed to break down below the 1.32 level, we would become sellers.
Written by FX Empire