Video Analysis – EUR/USD January 20, 2015

Looking at the EUR/USD pair during the session on Monday, we broke a bit higher during the course of the day, but keep in mind that it is Martin Luther King Jr. day, which means liquidity would suffer a bit during American trading. Having said that though, we did not break the top of the hammer, which is the technical signal to start buying. If we do that, we should head to the 1.18 level, where we would anticipate seeing bearish pressure and resistance. We would not hesitate to start selling a resistant candle in that area.

On the other hand, if we broke down below the bottom of the hammer we would be sellers as well because it is a break down below the bottom the hammer as well as the 1.15 support barrier. You away, we don’t really have an interest in buying this pair, because although German numbers were stronger than anticipated during the Monday session, it’s probably not enough to change the trend which of course is so strong to the downside.