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 (

fxtechstrategy.com

) -- The euro-dollar (EUR-USD) currency pair's recent corrective recovery attempt failed, and the pair closed this past week only marginally higher.

EUR-USD is likely to return to the 1.2945 level, its Dec. 14 low, in the coming week.

A breach of that level would put the euro-dollar currency pair on course to weaken toward 1.2874, its January 2011 low, followed by 1.2587.

EUR-USD's relative strength index is bearish and pointing lower, supporting this view.

Alternatively, the currency pair will have to break and hold at more than 1.3197 and then at more than 1.3212, its Nov. 25 low, to reduce its medium-term downside pressure.

If it breaches those levels, it could see further gains toward 1.3419, the Nov. 17 low, and then 1.3547, its Dec. 2 high. Further out, 1.4241, the Oct. 27 high, and 1.4342, the daily falling trend line, would be the next upside targets.

Overall, the euro-dollar currency pair continues to hold on to its medium-term downside bias.

-- 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

The Professional Suite

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.