NEW YORK (
) -- EUR/USD: Although price hesitation continues to occur, EUR remains vulnerable to the downside toward its hammer low/Nov. 2010 low at 1.2967(clearly seen on the weekly chart). We may see another price hesitation at that which may push the pair back up but if that level breaks, further weakness should develop toward the 1.2703 level.
Further down, support lies at the 1.2600 level. Its daily studies are bearish and pointing lower supporting this view. However, to reverse this view, a return above the 1.3494 level, its last week high must occur. This will create scope for more recovery toward the 1.3785 level. Further out, resistance resides at the 1.4281 level traded in early Nov. 2010 ahead of its Jan. 17, 2010 high at 1.4413. All in all, EUR remains vulnerable to the downside nearer term as it eyes the 1.2968 level.
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.