By Mohammed Isah of fxtechstrategy.com
: The pair has erased about 75% of its declines from the 1.5380 level (March 17 high) to the 1.47832 level to close the week higher at 1.5204.
This has left the pair eyeing further strength toward 1.5380. A breach of that level would resume the pair's recovery (from 1.4782) toward 1.5574, its Feb. 23 high. It possibly could aim even higher, toward the 1.5814 level, its Feb. 17 high.
The weekly relative strength index has turned higher, supporting this view.
Alternatively, further weakness will set the stage for a run at the March 23 high at 1.5110, where a reversal of roles should occur and turn the pair higher again.
However, if that level is broken, the pair could target its 2010 low at 1.4782. A loss there would invalidate the current consolidative to corrective bias and turn the focus toward the 1.4511 level, the April 26, 2009 low, followed by the April 2009 low at 1.4396.
On the whole, the pair continues to retain its consolidative to corrective tone as it looks for a recapture of the 1.5380 level.
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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.