A hammer is a common candlestick formation that is thought to be bullish. It is formed over 1 time period (for example if you are looking at daily charts this is a one day bar). The candle is aptly named as the formation looks like a hammer with the closing price being near the top of the bar and a wick (at least two times longer than the solid formation)
EUR/USD formed a hammer by the end of the week, with many traders celebrating some of the successes coming out of the EU in reference to resolving the debt issues there. The pair does look to have a limited upside though. USD/CAD formed a shooting star for the week, but is sitting just above the parity level - an area that has been very supportive as of late. Again - limited moves more than likely, especially with oil getting so close to $100. AUD/USD looks very much like EUR/USD. Our prognosis? Choppy news driven trading for the week. Again. Play video >>
NZD/JPY fell for the Thursday session, but has found support in the 60 handle to form a hammer. NZD/USD has had a similar session, and in the end formed a bit of a hammer shaped candle. Play video >>
NZD/USD had a strange day on Tuesday. While the rest of the world partied and celebrated the resignation of the Italian PM, it couldn't break above the 0.80 level. AUD/USD formed another hammer on the daily chart for Tuesday, and the 1.03 level looks like it is going to be supportive. Play video >>
EUR/USD had a fairly volatile day on Wednesday as rumors completely took over the financial markets around the world. EUR/CHF had a bearish day, and then bounced - to form a green hammer. This shows that the pair "wants" to rise Play video >>
GBP/USD smashed into the 1.60 level on Monday, and then fell a bit. GBP/JPY looks like a pair that is finding a slow healthy "grind" upward. Play video >>
The GBP/USD pair fell on Thursday, and even went below the 1.57 level for a time. The USD/CAD pair rose, and then fell on Thursday - forming a shooting star at the bottom of the recent run. Play video >>
Create a FREE account