By Mohammed Isah of fxtechstrategy.com
NEW YORK (
: The euro-dollar currency pair's incursions into the 1.3000 region met with strong resistance Friday as highlighted in our earlier analysis.
This calls for caution as the 1.3000 level could continue to attract bears due to its significance.
Still, despite this price action, the euro-dollar pair retains its nearer-term uptrend started from the 1.1875 level as it closed sharply higher at the end of the week.
A decisive clearance of the 1.3000 level is now required for the pair to continue this uptrend and make gains toward its May 10 high at 1.3093. A breach of that level would trigger further strength toward the May 3 high.
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The weekly relative strength index is bullish and pointing higher, supporting this view.
On the downside, the pair will have to violate the 1.2721 and the 1.2466 levels in order to halt its nearer-term upside momentum and clear the way for more downside pressure toward its .50. Fibonacci retracement (1.1875-1.2466 rally) at 1.2169 and its June 14 low at 1.2162. If the pair moved below that latter level, it would then target the 1.2000 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 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.