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The EUR/USD pair fell significantly during the Monday session, after initially gapping lower. Because of the initial move, many traders got involved in the rout look to be set. However, the American traders sold the Dollar and over fist during the US session as per normal, and saved the Euro.
Because of this, we see the market forming a hammer for the session, and it does suggest that perhaps a bounce is coming. The 1.23 level looks rather resistive, so we don't think that the rally will last to awfully long. Because of this, we are simply looking for a bounce from which to sell on a week candle if we get it. Of course, if we break the lows from the session during Monday, this is an extremely bearish situation well. We simply will not buy the Euro as there far too many issues in that area.