FX.co ★ Bullish hammer pattern in EURUSD.

EURUSD yesterday reached our target at the key 38% Fibonacci retracement and formed a hammer candlestick pattern followed by a bullish candle today. This combination implies more upside should be expected.

Black lines - Fibonacci levels

Yesterdays Daily candle was a hammer candlestick with a lower shadow. Today's upward move completes the reversal signal and as long as price is above yesterday's lows we expect a move higher. Our initial target was achieved at the 38% Fibonacci level. It would be ideal to see price test the longer-term green support trend line, but market prices do not always move in an ideal pattern