EUR-USD: 1.3494 Level Is Key

By Mohammed Isah of fxtechstrategy.com

NEW YORK ( fxtechstrategy.com) -- The euro-dollar currency pair (EUR-USD) has halted its recent weakness and begun a recovery, but we would like to see it decisively violate 1.3494, its Dec. 14 high, to convince us it will make further recovery gains.

If it does clear that level, the euro-dollar currency pair should next target 1.3785. A violation there would then expose 1.4281, a level reached in early November. After that, the next target would be the Jan. 17 high at 1.4413.

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If 1.3494 caps the currency pair's gains, however, the bias would be to the downside, with the pair targeting 1.2967. A break of that level would leave the pair targeting 1.2713 and maybe even 1.2600.

Overall, the euro-dollar currency pair has triggered a recovery, but it has to break and hold above the 1.3494 level to convince the market that further gains are on the way.

--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.

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