Hammer Formation *RES 4: 1.1321...>

EURO-DOLLAR TECHS: Hammer Formation

*RES 4: 1.1321 High Jul 2

*RES 3: 1.1286 High Jul 11 and 76.4% of the Jun 25 - Oct 1 Decline

*RES 2: 1.1250 High Aug 6

*RES 1: 1.1239 High Dec 31 and bull trigger

*PRICE: 1.1184 @ 10:17 GMT Jan 7

*SUP 1: 1.1157 Low Jan 6

*SUP 2: 1.1125 Low Jan 3 and key near-term support

*SUP 3: 1.1096 Low Dec 27

*SUP 4: 1.1066/63 Low Dec 20 / 100-dma

EURUSD appears more constructive overall following yesterday's extension of the

recovery that began off Friday's 1.1125 low. In candle terms, Friday's pattern

is a hammer and signals a reversal. This reinforces the view the recent pullback

was corrective, with the underlying outlook still bullish. Last week's breach of

1.1199, the Dec 13 high confirmed a resumption of the recovery that began in

October with attention on 1.1250 and 1.1286. Support lies at 1.1125.