EUR-USD: Potential for Recovery Higher

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( -- The euro-dollar currency pair has halted its weakness following a failed test of the 1.3144 level this past week.

With a high wave candle pattern now in place, there is the possibility of a recovery higher in the coming week.

In such a case, the Friday high at 1.3524 will come in as initial resistance, and a violation of that level will create the scope for a move lower toward the pair's Sept. 28 high at 1.3690.

We may see price hesitation turn the euro-dollar currency pair lower at this level, but if that fails to occur, further strength could build toward 1.3799, the September high, and then 1.3835.

On the downside, the risk is for the pair to return below the 1.3144 level and annul its corrective attempt and then target the 1.3000 psychological level.

Price hesitation ahead of or at this level could occur and turn the pair back up, but if this level is taken out, further weakness should shape up toward 1.2875.

-- Written by Mohammed Isah.

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Mohammed Isah is a technical strategist and head of research at, 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 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 At, 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.