EUR-USD: Retains Recovery Tone

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) -- The euro-dollar currency pair appears set to strengthen further in the near term, and we continue to maintain our upside bias on the pair.

EUR-USD closed higher this past week after it tested a high of 1.3322.

A recapture of that level will call for a run at the 1.3375 level, EUR-USD's Dec. 12 level.

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

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

Alternatively, on any pullback, the euro-dollar currency pair will target the 1.3025/26 levels where a reversal of roles as support is likely to occur and turn the pair back up.

If those levels are taken out, however, further declines are expected toward the 1.2856/75 levels, which mark EUR-USD's Dec. 29 low/January 2011 low.

Further down, support lies at the 1.2624 level. A loss of that level will cause the pair to resume its medium-term weakness and aim at 1.2587, its August 2010 low.

All in all, EUR continues to retain its corrective recovery tone.

-- Written by Mohammed Isah.

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