EUR-USD: Doji Candle Formation

By Mohammed Isah of fxtechstrategy.com

NEW YORK ( fxtechstrategy.com) -- Price hesitation saw EUR closing flat the past week to form a doji candle.

With a sign of warning signaled, the pair is now faced with either to follow through lower or return above the 1.3757 level. If the latter occurs, upside risk will turn towards the 1.3785 level with a break targeting its Nov. 8 high at 1.4083 level.

Further out, resistance comes in at the 1.4281 level traded in early November 2010. Its weekly stochastic is bullish and pointing higher supporting this view.

Alternatively, below the 13539 level will pave the way for more declines towards the 1.3494 level. This level is expected to reverse roles and provide support thus turning the pair higher. Below there if seen will target the 1.3245 level and then the 1.3000 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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