By Mohammed Isah of fxtechstrategy.com
: The pair finished weaker for a third consecutive week, breaking through the 90.59/90.23 levels (the Dec. 21/Jan. 15 lows) to close at 89.80.
to view a chart of the pair.
Further declines are now likely to be seen toward 88.30, the Dec. 14 level.
The pair may take a breather there and initiate some form of correction, but if that doesn't happen, we could witness additional losses toward the Dec. 9 level at 87.35, with a decisive violation there clearing the way for a run at 85.85, the Nov. 30 high and, ultimately, 84.80, the 2009 low.
This view remains valid as long as the pair trades within its defined falling channel.
The weekly relative strength index is bearish and pointing lower, suggesting further downside weakness.
If we do see a corrective recovery, however, it initially will aim at the 90.59/23 levels with a turn above there exposing the Jan. 21 high at 91.86 and then the falling channel, which is currently at 92.90 and is expected to create a cap.
Overall, with the pair having maintained a third week of downside weakness, we continue to see further risk toward the 88.30 level and even lower.
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.