EUR-USD Set to Move Higher

NEW YORK (TheStreet) - Having reversed its Monday losses in early trading today, the EUR-USD faces further upside risk as it builds towards the 1.3453 level. A decisive violation of that level is needed to resume its corrective strength started from the 1.2874 level towards the 1.3494 level, its Dec. 14, 2011.

While that level may present a strong resistance on an initial test, an eventual violation of there will call for more recovery towards the 1.3785 level and possibly higher.

On the downside, if it falls below its 2011 low at 1.2874, it will have to be traded to reverse its current upside attempt. 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 for a recapture of the 1.3453 level.

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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