By Mohammed Isah of fxtechstrategy.com
: The pair is working its way toward its 2010 low at 1.0059 after losing corrective recovery momentum at 1.0301, the March 26 high, and tumbling lower to end the week at 1.0106.
We look for the 1.0059 level to give way for the resumption of the pair's broader medium-term downtrend (triggered off the 1.3060 level) toward the big psychological/parity level at 1.0000.
On an initial test 1.0000 should turn the pair back up and possibly trigger a corrective recovery.
However, should the pair violate that level, we would look for a push toward the July 2008 low at 0.9818 and then 0.9707, the February 2008 low.
The daily stochastics are bearish and pointing lower, supporting this view.
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On the other hand, if the pair can decisively clear the 1.0219/04 levels and 1.0301, its Mar 26 high, that would set the stage for a further corrective recovery toward 1.0320, the March 11 high, and then 1.0368, the Feb. 22 low.
On the whole, however, a recapture of the 1.0059 level and a move lower toward parity at 1.0000 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.