The EURUSD pair fell slightly but then turned back around to form a hammer.

The hammer of course is a bullish sign but I think that any rally at this point in time should be a nice selling opportunity on signs of exhaustion. With this, the market should find “value” at higher levels, so if we get an exhaustive candle on willing to jump on it.

I have no interest whatsoever in buying this market because I recognize how bearish the Euro is in general. I still believe that we are going to break down below the 1.05 level over the longer term.

Editor’s Note: Equity investors/traders can use the Currency Shares Euro Trust (FXE, quote) ETF to take positions in the euro without a FOREX account.  The ETF looks to track the price of the euro (EURUSD), minus ETF fee. The fund seeks to reflect the price of the euro with the shares representing a cost-effective investment relative to investing in the FOREX market.

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