NEW YORK (
) - EUR/USD: Although our bias on EUR continues to point higher, price hesitation is now seen as the candles are becoming shorter and price movements are slower. Another evidence is overbought condition now seen. However, if the pair decisively breaks and holds above the 1.3785 level, its Nov. 22, 2010, we should see price extension toward the 1.3970 level, its Nov. 9, 2010 high.
Its daily RSI is supportive of this view though bullish and oversold. On the downside, support lies at the 1.3571 level, its Jan. 25, 2011 low followed by the 1.3494 level, where a reversal of roles is expected if tested. Below that level, if seen, will call for further declines toward its Jan. 17,2011 low at 1.3245 and possibly lower toward the 1.3000 level and next its 2011 low at 1.2874.
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.