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 (
) -- The pair has broken below its key support at the 1.3491 level, its Sept. 12, 2011 low on the back of its Wednesday weakness. With that said EUR has resumed its medium term weakness started from the 1.4938 level and now looks to target its Feb. 2011 low at 1.3245. However, its immediate challenge is to decisively breach the 1.3427 level and hold below it to trigger further weakness. Other supports are located at the 1.3088 level, its Jan. 13, 2011 low and the 1.3000 level, its major psycho level. Its daily RSI is bearish and pointing lower supporting this view. Conversely, on any recovery, EUR will aim at the 1.3491 level just eroded. A reversal of roles as resistance is expected there. Further out, resistance comes in at 1.3799 level, its Sept. 21, 2011 high ahead of the 1.3936 level, its Sept. 9, 2011 high. All in all, EUR has resumed its medium-term downtrend and looks to weaken 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.