The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (
) -- Having taken out its key resistance at the 1.3322 level and resumed its medium-term uptrend, the euro-dollar currency pair is expected to make further gains toward 1.3484, its Dec. 5 high.
A breach of that level will cause EUR-USD to make a run at 1.3547, its Dec. 2 high. After that, the next target will be the euro-dollar pair's 200-day exponential moving average at 1.3642.
EUR-USD's weekly relative strength index is bullish and pointing higher, suggesting further strength.
On the downside, the threat is for EUR-USD to return to 1.3322, the level it just eroded. A reversal of roles as support is likely to occur there, but if that level fails, the next target will be 1.3026, the Feb. 6 low.
Further down, support stands at 1.2975, where a breach will set the stage for further declines toward 1.2930, the pair's Jan. 25 low.
All in all, the euro-dollar currency pair's medium-term trend remains higher with the risk of further strength.
-- Written by Mohammed Isah
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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.