EUR-USD: Bullish Momentum Remains

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (fxtechstrategy.com) -- Despite a marginally lower close due to price hesitation this past week, the euro-dollar currency pair's broader upside outlook remains intact.

EUR-USD must break and hold above the 1.3233 level to see further gains. After that, the next target would be 1.3375, the pair's Dec. 12 level.

On further price extension, the euro-dollar currency pair should next target 1.3484, its Dec. 5 high, and possibly 1.3547, its Dec. 2 high.

EUR-USD's weekly RSI is bullish and pointing higher, suggesting further strength.

> > Bull or Bear? Vote in Our Poll

Alternatively, on any pullback, the euro-dollar currency pair will target 1.3074, but that level likely will serve as support and turn the pair up again.

If that level is taken out, however, further declines are expected toward the 1.2856/1.2875 levels, EUR-USD's Dec. 29 low/January 2011 low.

Further down, support lies at the 1.2624 level where a loss would resume the pair's medium term weakness and leave EUR-USD to aim at the 1.2587 level, its August 2010 low.

All in all, the euro-dollar currency pair continues to retain its corrective recovery tone despite this past week's price hesitation.

-- Written by Mohammed Isah.

>To contact the staff member responsible for this article, click here: Ross Snel.

>To follow the writer on Twitter, go to http://twitter.com/fxtechstrategy.

>To submit a news tip, send an email to: [e-mail].

>To order reprints of this article, click here: Reprints