The EUR/USD pair fell for most of the session on Tuesday as the 1.3250 level held as resistance. However, by the end of the day we saw a bounce in this pair, and the resulting candle was a hammer. The pair looks as if the bulls are going to press the area hard, so a breakout cannot be ruled out at this point. None the less, we prefer to sell weakness going forward, so if we break out to the upside, we will look at 1.35 as a potential selling area on signs of weakness.
The breaking below of the range for the hammer that was formed on Tuesday would be a massively bearish signal, and have us selling. The Euro itself isn't something we want to own on the whole, but at this point we don't see any major signals to sell. In the meantime, we simply wait for one of the two scenarios above. If we manage a daily close above 1.35, then we have to reassess the marketplace in general.
EUR/USD Forecast March 21, 2012, Technical Analysis
EUR/USD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3