The EUR/USD pair initially pulled back during trading on Monday but found enough support near the 1.2275 level to turn things around and rallied significantly. By doing so, the market ended up forming a hammer, sitting just below the 50-day EMA. This is a very positive sign, and if we can break above the top of the range during the day on Monday, I feel that this market will probably go looking towards the 1.24 level next, followed very quickly by the 1.2450 level. Pullbacks should continue to be buying opportunities, but we do have several important US announcements coming out over the next several sessions. Because of this, I think the one thing you can count on is volatility, but we been in an uptrend for some time so at this point nothing has changed, and I still believe that we will find buyers on these dips.
for more analysis: http://www.dailyforex.com
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