By Mohammed Isah of fxtechstrategy.com
: Although there has been some price hesitation, the euro-dollar currency pair's short-term recovery that began at the 1.1875 level (the 2010 low) remains intact -- so long as the the pair trades higher than 1.2721 and 1.2466.
For now, we look for the euro-dollar pair to move toward 1.3027, its July 20 high.
If it breaks through that level, it should see even more strength, toward its May 10 high at 1.3093.
Above there, the pair should target its May 3 high at 1.3310.
Alternatively, a violation of the 1.2721 and the 1.2466 levels would halt short-term upside momentum and clear the way for more downside pressure toward the .50 Fibonacci retracement (1.1875-1.2466) at 1.2169 and then 1.2162, the June 14 low.
A breach of the latter level would set the stage for further weakness toward the 1.2000 level.
Overall, the euro-dollar currency pair remains biased to the upside and looks set to recapture the 1.3000 and 1.3027 levels.
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.