By Mohammed Isah of fxtechstrategy.com
: Having decisively broken and held above its March 3 high at 1.3735, the pair has cleared the way for a move higher toward 1.3787, its Feb. 17 high.
A clean penetration and negation of that level will leave the pair targeting heavier resistance at 1.3838, the Feb. 9 high. We expect a halt in price at that level to turn the pair lower, in line with its broader medium-term downtrend.
However, if that 1.3838 level gives in, the pair could target the Feb. 3 high at 1.4025.
The weekly relative strength index has turned higher, suggesting further strength.
In case of pullbacks, the 1.3735 level just violated should provide support, and if that level is broken, our focus will turn to the March 9 low at 1.3536 followed by the 2010 low at 1.3433.
On the whole, further recovery strength is now expected toward the 1.3787/1.3838 levels now that the pair has taken out the 1.3735 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.