The Euro’s recent recovery against the greenback (USD) has seen the formation of a bullish hammer or bullish engulfing candlestick pattern on our daily chart. This means we can have more gains should we follow today up with another winning one. We are not convinced of this as of yet. The EUR/USD is beginning to get into a strong resistance congestion area which lies form 1.3435 all the way up 1.35.
Alternatively speaking, a look at our 4 hour chart, shows a more bearish picture as we have formed what is called a Harami chart pattern. Should we close below 1.34 then 1.32, then this would set up a bearish drop from the high near 1.3338, which is close to the resistance at 1.3340/41.