The pair continues to build further strength following through higher on the back of its past week gains and opening the door for additional up move.
In such a case, the next level would be its July 20, 2010 high at 1.0584. A breakthrough there would creating scope for more strength towards the 1.0675 high, its July 6, 2010 high.
A breach of that level will clear the way for further higher prices towards the 1.0851 level, its 2010 high.
Its weekly RSI is bullish and pointing higher supporting this view.
Alternatively, on pullbacks the pair should decline towards the 1.0394 level, its July 27, 2010 low and below that its Aug. 9, 2010 low at 1.0255 and the 1.0105 level.
Overall, with a buildup on its bullish strength seen, further upside threats are likely.
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.