EUR-USD: Further Weakening - TheStreet

EUR-USD

: The pair continues to weaken breaking below the 1.4844 level Tuesday and weakening further today following its collapse off the 1.5062 level. It looks to target its LT rising trendline drawn from the 1.2456 level.

GBP-USD is now seen maintaining a marginal gain above its falling channel after reversing intra- day losses below that channel today. The pair still remains vulnerable to the downside while trading below its recent high at 1.6692.

With the 91.31 level out of the way, USD-JPY has turned its focus on the 90.06 level after following through lower on its failure ahead of its falling channel on Tuesday. Below there could target the 88.82 level.

AUD-USD extended its failure at the 0.9327 level today selling off sharply and breaking below its psycho level at 0.9000. That leaves further downside risk towards the 0.8982 and the 0.8876 levels.

In a similar fashion, EUR-JPY weakened for a third day in a row breaking below the 134.75 level and declining to as low as 133.25. The next downside target resides at the 132.23 level. EUR-GBP also sold off today weakening further for a third consecutive day and invalidating the 0.9000/02 and 0.8982 levels. This development has cleared the way for a run at the 0.8933 level, its .50 Fib Ret.

Having reversed its Tuesday losses and taken out its minor resistance at 1.0696, USD-CAD now threatens further upside towards the 1.0958 level.

A quick look at the commodities market shows gold extending its corrective weakness and losing hold on its strong support at the 1,030.85 level. That has opened up downside risk towards the 1,024 level. Crude oil also reversed its Tuesday gains and was seen selling off today suggesting further declines could target the 72.71 level.

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.