EUR/USD: Corrective to consolidation continues to dominate the currency pair above the 1.3200 level. As highlighted in a previous analysis, a hold below the 1.3200 level is very crucial for the continuation of EUR's medium-term weakness. Note that if a break and hold below that level is not achievable, especially on a weekly basis, we should be preparing for another corrective move higher.
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In such a case, the 1.3414 level, its April 26 high, will be targeted ahead of the 1.3522 level, the high of April 20. Beyond there will be open further upside risk towards the April 12 high of 1.3691 and subsequently the 1.3816 level, its March 17 high.
The warning is that if the 1.3200 and 1.3113 levels are traded, we will reverse our upside view and turn the focus to the big pyscho level at 1.3000 and then its April 19 low at 1.2884.
Overall, with a loss of bear momentum at the 1.3113 level pushing the pair back above the 1.3200 level, risk of a recovery higher is now developing.
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.