By Mohammed Isah of
: With the pair holding firmly below its invalidated strong support, its broader weakness triggered off the 1.5139/43 level continues to point lower despite two days of recovery starting Tuesday at 1.4216.
Our downside outlook on the pair remains valid while three key resistance levels outlined below and shown on the
Initial resistance starts at 1.4446, followed by 1.4479, its Dec. 2 low and then 1.4625, its Nov. 3 low.
However, we continue to look to the downside below the aforementioned levels toward 1.4176, the Sept. 1 low.
Further down, support is situated at 1.4044, the Aug. 17 low, and then at 1.4000 and 1.4006, the important psychological level and the July 29 low, respectively.
This view is supported by the pair's weekly stochastics and relative strength index, which are bearish and trending lower, suggesting further downside weakness.
Having halted its medium-term upward trend started at the 1.2456 level in March and tumbled from the 1.5139/43 level through layers of support, the euro/dollar remains vulnerable to the downside, with 1.4176 seen as the next target.
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.