Despite its current bid tone, the euro continues to maintain its overall medium-term downtrend as it looks to recapture the 1.2520 level, its 2010 low and its 2009 low at 1.2456.
Though price hesitations may occur at the latter level on initial test, we expect it to give in and eventually trigger the resumption of its primary trend. This should open the door for more weakness towards its 2008 low at 1.2328 and even lower.
Alternatively, we will have to see a break and close above the 1.3093 level to bring more strength towards the 1.3113 level, its April 28, 2010 low. This level should reverse roles and provide support, thus turning the pair lower again.
Its daily studies are bearish and pointing lower suggesting further weakness. All in all, EUR's bearishness remains intact as it looks to retarget the 1.2520/1.2456 levels.
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.