By FX Empire.com
EUR/USD had a negative week over the last five sessions, and the pair seems to be stuck in between two big areas. The resistance can be defined as the 1.32 level, and the support can be defined as the 1.30 to 1.29 area. The resulting candle was a hammer though, and the market does look like it wants to rise.
Looking at this candle, we have a simple and binary type of trade setup. The breaking of the top of the hammer, and by extension the 1.32 level would be a very supportive signal that has us buying. The breaking of the bottom of the hammer would be massively bearish, and have us selling hand over fist. As soon as one of these signals happen, we will be in the market again.
EUR/USD Forecast for the Week of February 6, 2012, Technical Analysis
Originally posted here
