After a marginal weekly close following a loss of upside momentum at 1.4768, the pair has started the week on a bullish note reversing strongly higher off the 1.4386 level today.
Despite its loss of momentum at the 1.4768 level, we retain our bullish corrective to consolidation bias on the pair as long as it holds above the 1.4257/26 zone, its May 25, 2010 low.
This suggests that an eventual recapture of the 1.4768 level is likely to trigger its corrective upside resumption towards the 1.4915 level, its May 13, 2010 low. On a sustained break above there, its May 10, 2010 at 1.5052 will be targeted.
On the downside, to reverse our corrective recovery/consolidation view, the pair will have to convincingly violate the 1.4257/26 zone to resume its broader weakness with the next downside objective located at its March,2009 low at 1.4112 and then its big psycho level at 1.4000.
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.