EUR/USD Falters Ahead of 1.3494

EUR/USD: The pair now faces the possibility of correcting its current recovery as attempts on the 1.3431 level failed in early trading Friday.

Though biased to the upside nearer term, a decisive break and hold above 1.3431, its high of Jan. 4, will have to occur to resume that trend. Further out, the 1.3494 level will serve as the next upside objective at which another price hesitation is likely to occur.

Beyond there will call for more recovery towards the 1.3785 level.

On the downside, below its 2011 low at 1.2874 will have to be traded to reverse its current upside attempts. This will open the door for a decline towards the 1.2713 level and subsequently the 1.2600 level.

All in all, with a bullish recovery tone still seen, risk remains higher though hesitating.

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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