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 (
) -- The euro-dollar currency pair this week wiped out its gains from the previous week and closed below key support levels at 1.3835, its Sept. 9 low, and at 1.3623, its July 12 low.
The currency pair enters the new week on a bearish note.
We expect a follow-through lower toward 1.3427, the pair's February low. A violation of that level would see the pair weaken further toward 1.3427, its February 2011 low. Further down, the next target would be 1.3382, EUR-USD's Sept. 22 low.
Price hesitation could occur there and turn the pair back up, but if it failed to materialize, EUR-USD would target the 1.3300 psychological level, and then 1.3245, its Jan. 17 low.
The euro-dollar currency pair's weekly relative strength index is bearish and pointing lower, suggesting further weakness.
Alternatively, the next upside target will be 1.3799, the September 2011 high. A breach of that level would set the stage for more gains toward 1.3835 and then 1.3936, the pair's Sept. 9 high.
All in all, the euro-dollar currency pair continues to maintain its medium-term bearishness and is likely to weaken further in the coming week.
-- Written by Mohammed Isah
>To contact the staff member responsible for this article, click here:
>To follow the writer on Twitter, go to
>To submit a news tip, send an email to:
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.