By Mohammed Isah of fxtechstrategy.com
NEW YORK (
) -- The euro-dollar currency pair (EUR-USD) closed flat this past week following its price failure at the 1.4157 level.
This development could be a warning of impending corrective weakness. We could see declines toward the Oct. 5 low at 1.3774.
Further down, the pair should target the Oct. 12 low at 1.3636, although we expect this level to halt declines and turn the euro-dollar pair back up again.
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A loss of the 1.3636 level, however, would leave the pair targeting its .50 Fibonacci retracement (1.5143-1.1875 decline) at 1.3500 and then 1.3332.
On the upside, a firm break and hold above 1.4000 is likely to see a return to 1.4157 with a clearance of the latter level extending further strength toward the pair's Jan. 24 high at 1.4194.
A break of that level would leave the pair targeting the Jan. 17 high at 1.4413.
--Written by Mohammed Isah
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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.