EUR/USD: The pair cleared its 2010 low of 1.3113 and sold off hard through the 1.3000 level to test its lowest price in more than 12 months at 1.2960 on Tuesday.
Still maintaining a bearish tone and weakening, threats are seen towards its April 19 low at 1.2884 and the 1.2456 level, its low of March 9. Note that we are still watching how the euro will react or behave below the 1.3000 level.
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We will like to see the pair hold firmly below that level, which will be supportive of a quicker decline towards the support levels. Additionally, a weekly close below the 1.3000 level will add to its bearish case.
Alternatively, if a recovery is triggered, its eroded support at the 1.3000 level should reverse roles and offer resistance, thus turning the pair back down again. Above there if seen will call for a move towards the 1.3113 level where shorts could be triggered pushing the pair down. Another resistance lies at the 1.3359 level, its high of last week.
Overall, further risk is expected towards the 1.2884 level having taken out the 1.3113 and 1.3000 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.