The EUR/USD pair initially tried to fall during the course of the day on Monday, but found enough support at the 1.13 level to bounce and form a little bit of a hammer.

This suggests that the market is ready to bounce and perhaps trying to reach towards the 1.15 level which we see as being significant resistance above.

With that, we feel that the market is probably going to play “small ball” at the moment, and we are simply waiting to see if we get resistance near the 1.15 level to start selling again.

On the other hand, if we break down below the bottom of the hammer, we are sellers as well.

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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