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 (
) - With the EUR-USD pair rallying strongly to resume its short-term uptrend today, risk of further upside is likely toward the Sept. 18 high of 1.4095. On a break of that level, EUR will target the Sept. 6 high of 1.4283 followed by the 1.4379 level, its Sept. 1 low. Its daily RSI is bullish and pointing higher suggesting further strength.
On the downside, the risk to this analysis will be for the pair to return below the 1.3913 to 1.3937 levels, its highs of Oct. 17 and Sept. 15. This will annul its present upside tone and bring further weakness toward the 1.3690 to 1.3650 levels.
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A move below that range will activate further declines toward its Oct. 10 low at 1.3377 and then the 1.3144 level, its October low. A break still lower will resume its medium-term weakness. All in all, with EUR maintaining its recovery tone further upside gains are expected.
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.