By Mohammed Isah of fxtechstrategy.com
NEW YORK (
: We look for the euro-dollar currency pair to head even higher now that it has broken out of its sideways trading range.
This development now leaves upside risk toward 1.3332, the euro-dollar pair's Aug. 6 high. A move above there will set off the pair's short-term uptrend, and it will target its .50 Fibonacci retracement (1.5143-1.1875 decline) at 1.3500.
A move beyond there will open further upside risk toward 1.3691, the April 12 high.
The pair's weekly RSI is bullish and pointing higher, supporting this view.
Alternatively, on pullbacks, the euro-dollar currency pair should aim at 1.3074, its 200-day exponential moving average, followed by 1.2922. A turn below the latter level would leave the pair targeting 1.2586, its Aug. 24 low and then 1.2522, its July 13 high.
Further weakness will see the pair target its June 20 high at 1.
Overall, with bull pressure pushing the pair above its sideways trading range, further strength is likely toward the 1.3332 level.
--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.