By Mohammed Isah of fxtechstrategy.com
-- With EUR seen this morning reversing its Wednesday strength and trading above its Tuesday high (1.4761), its psycho level at 1.4800 remains the immediate target.
A clean invalidation of there will set the stage for a return to its year high at the 1.4844 level, with a violation of that level resuming its medium-term uptrend currently on hold toward the 1.4875 level, the Sept. 21, 2009 high.
Further out, resistance is located at its psycho level at 1.5000 and then the 1.5082 level, its Aug. 10, 2008, high. Its daily studies are supportive of this view, as they have turned higher. However, any price stall at the current level will put its nearby support at 1.4672 under pressure, where a break lower will expose its Oct. 2 low at 1.4479.
A cap is expected at the latter level. Below there, though not envisaged at the level, its MT rising trendline current at 1.4374 will be exposed. We retain our medium- term bullish view on the pair with a break and hold above the 1.4844 level triggering that trend.
Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical research website. He has been trading and analyzing the foreign exchange market for the past 7 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. Mohammed 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 etc 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 5 key commodities.