The EUR/USD pair fell during most of the session on Friday, but as you can see below the 1.32 level we had enough support come into the marketplace in order to push the market back up, and form a nice looking hammer. This hammer is at the bottom of the major consolidation area, and as a result we think a break above the highs of the candle is a buy signal as the market should return to the 1.34 level. The market is waiting to find out what the Federal Reserve is going to do as far as quantitative easing in the month of September or October, and as a result expect consolidation to continue.
Written by FX Empire