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EUR-USD Bear Pressure Intact

Although EUR-USD is now seen backing off lower price levels, it retains its bearish theme, having triggered the resumption of its medium-term weakness.

By Mohammed Isah,technical strategist and head of research at FXTechstrategy.com.

Although

EUR-USD

is now seen backing off lower price levels, it retains its bearish theme, having triggered the resumption of its medium-term weakness on Thursday. Immediate support lies at the 1.3422/09 level, with a cut through there exposing the 1.3211 level. Resistance lies at the 1.3530/84 levels.

GBP-USD's

resumption of its medium-term downtrend continues to push it lower, trading to 1.5343 today, its lowest price since May 18, 2009. Though it has reversed those losses and currently maintains marginal gains, its broader bearish structure remains intact, suggesting any upside recovery is seen as corrective. Supports are seen at the 1.5351 level and then the 1.5276 level.

EUR-GBP

may be strengthening, but while trapped between the 0.8839 and the 0.8601 levels, our view is that of consolidation with downside bias targeting its YTD low at 0.8601. A move above the 1.8839 level will put this on hold.

AUD-USD

has returned above the 0.8924 level after declining to a low of 0.8877 in early trading today. This price development has left risk for a return to its swing high at the 0.9035 level, where a break could target higher prices. Support is now seen at the 0.8924 level.

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USD-CAD

remains hesitant as its earlier gains today have been reversed and risk is now building to the downside toward the 1.0411/1.0395 levels and then the 1.0219/04 levels.

USD-JPY

remains on the offensive following its break and hold above its declining channel at the 91.57 level. With a reversal of its intraday gains seen, momentum build-up should continue higher, with eyes on the 93.74 level.

With

EUR-JPY

now trading cautiously above the 124.37 level following the reversal of its intraday losses today, risk of further upside is now seen toward the 124.83 level where a cap is expected. Weakness, if seen, will aim at the 121.37 and then the 120.68 levels.

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

The Professional Suite

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.