By Mohammed Isah of FXTechstrategy.com
: A follow-through higher on the cross' up move off the 0.9076 level saw it rallying and decisively violating the 0.9299 level (Sept. 27 high) today. With the resumption of its short-term uptrend activated, risk remains higher for further strength toward the 0.9499 level, its March '09 high, with a turn above there yielding a further up move toward its December 2008 high at 0.9803.
Beyond the latter, it would resume its medium to longer-term uptrend targeting the 1.0000 level. That is its big psycho level/parity level. The RSI is bullish and pointing higher, suggesting further strength. On the downside, its invalidated resistance should now reverse roles and provide support on any pullback. Further out, supports are located at 0.9158 level, its Oct. 8 low and the 0.9076 level, its Sept. 30 low. A cap is expected at that level if seen, but if it is violated, the 0.9000 level, its psycho level followed by the 0.8868 level, its May high, will be targeted. On the whole, with a resumption of its short- term uptrend triggered, potential for further upside gains is likely.
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 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.