It seems that hunts have once again become fashionable, as many of the traders I speak to recognize the value of the euro at these low levels. We have the 50% Fibonacci retracement level, the hammer of the previous week, and now a break above the 1.15 level. They all predict good things for the euro, but I do not want to say that we are going in the right direction. I believe that we will eventually work to 1.18 level above, which was the top of the previous consolidation, but we have a lot of noise between here and there. If we close the week, we are faced with considerable resistance, so I would not be surprised if I saw a pullback in the short term before the buyers returned. However, I also recognize that last week's hammer at the 50% Fibonacci retracement level is a very strong sign, and probably one that will attract a lot of attention from technical traders.
The Turkish crisis seems to calm down a little, or I must say that the market reaction is over, and in the end that is really the only thing that matters to the Forex speculator. It seems that attention is beginning to focus on other things, such as the risk appetite around the world that we currently enjoy. That should lift the euro as a whole and offer value to those who strive for it. However, if we were to break under the bottom of the hammer last week, that would indeed be a very negative sign.