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 (

fxtechstrategy.com

) -- The EUR-USD pair turned sharply lower on Wednesday and further declines could follow.

The pair is now correcting its recovery strength set from 1.3837 to the 1.4536 level. However, while the pair holds above 1.4242 and 1.4142, the risk remains toward the July 3 high of 1.4578. An eventual violation of that mark will target the June 7 high of 1.4696.

Further out, the 1.4938 level, its 2011 high, comes in as the next upside target. Its daily RSI is bullish and pointing higher supporting this view.

Conversely, the risk to our analysis will be a return to the 1.3837 level where a decisive break will resume its short-term weakness toward its March 6 low of 1.3751. Further support lies at the psychological barrier of 1.3700.

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

The Professional Suite

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.