By Mohammed Isah of fxtechstrategy.com
: The cross currency pair Monday pushed decisively through its Nov. 17 low at 0.8832, following through on last week's bearish momentum.
This has resumed the pair's short-term declines started from the 0.9410 level. The pair looks set to continue toward its long-term rising trend line, which is currently at 0.8745. We could see a bounce on an initial test of that level.
to see a chart of the pair.
However, if the pair trades below there, lower prices should develop toward the Sept. 11 low at 0.8722, then 0.8704 and then 0.8698, the July 13 high.
The daily studies are bearish and pointing lower, suggesting further weakness.
If a corrective recovery materializes at the current price level, however, the support that was just eroded at 0.8832 should reverse roles and provide resistance. Above that level, the pair will target its former range bottom at 0.8852 ahead of its Jan. 8 low at 0.8920. A turn above there will create further upside toward 0.9025, the Jan. 7 high, and then the range top at 0.9053.
On the whole, further threats remain lower now that the pair has resumed its broader bearishness from the 0.9410 level.
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Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces
for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.