NEW YORK (
) -- The EUR-USD pair looks to strengthen further after rallying strongly and reversing its one-day losses on Monday.
This development now leaves EUR targeting the Jan. 3 high of 1.3074, with a cut through there allowing the pair to push further higher toward the Dec. 21 high of 1.3197 level. Its daily RSI is bullish and pointing higher suggesting further strength.
On the downside, if its present recovery fails, the risk will be for EUR to restart its broader medium term downtrend by breaking the 1.2624 level. This will set the stage for further declines toward the August 2010 low of 1.2587. Further down, support stands at the 1.2479 level.
All in all, EUR continues to retain its corrective recovery tone as it looks to strengthen further.
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.