By Mohammed Isah of fxtechstrategy.com

NEW YORK ( TheStreet) -- The euro-dollar currency pair (EUR-USD) collapsed from the 1.4157 level in early October, beginning a period of corrective weakness that is now in its third week.

Yet the euro-dollar continues to maintain its medium-term bullish tone that was established from the 1.1875 level, its 2010 low, which it hit in early June.

Looking back, the pair saw a stretch of weakness from its 2009 high at 1.5143 to 1.1875. Then a rally ensued, pushing the pair to the aforementioned 1.4157 level in early October.

If you look at the weekly chart very carefully, you will notice that the pair just finished a second leg of upside gains and is now consolidating its uptrend.

The first leg of that uptrend started from the 1.1875 level and ended at 1.3332 in early August and was followed by a correction. The second one started from the 1.2586 level on Aug. 24 and ended at the 1.4157 level.

The current price action suggests that the pair is merely taking a breather from its medium-term rally and will resume that rally, targeting the 1.4413 level and possibly taking a stab at 1.5143.

In sum, we are bullish on euro vs. the dollar over the next one to three months.

--Written by Mohammed Isah.

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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 The Professional Suite 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.