EUR/USD: As downside pressure continues to mount on the pair, risk of a retest of the 1.3280 level, its low on April 8, and the 1.3266 level, its 2010 low, is likely. This is coming on the heels of a loss of momentum at the 1.3691 level, its April 12 low.
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We expect a cap at the 1.3280/66 zone, but if it snaps, lower prices should follow towards 1.3211 level and next its psycho level at 1.3000. Alternatively, the pair will have to trade above its April 12 high at 1.3691 to reverse its current weakness and bring further recovery towards its March 17 high at 1.3816 and subsequently its Feb. 3 high of 1.4025. The latter should cap gains on an initial test and then turn the pair lower again.
With pressure on the downside remaining intact, EUR should head further lower towards the 1.3280/66 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.