EUR-USD Pauses in Recovery

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-U.S. dollar pair reversed its Friday gains on Monday halting its recent recovery strength and turning its immediate risk to the downside.

However, while this occurs above the Sept. 28 high of 1.3690, there is risk of a return to the Sept. 15 high of 1.3937. This will bring further upside gains toward its big psychological level at 1.4000 and then the Sept. 6 high of 1.4283.

On the downside, the risk to this analysis will be for the pair to return below below the 1.3690 level. However, the ultimate target is the October low of 1.3144, where a break will annul its entire corrective strength and allow it to resume its medium weakness toward the 1.3000 level, its big psychological level. Price hesitation ahead of or at this level could occur and turn the pair back up but if taken out, further weakness should shape up toward the 1.2875.

All in all, with EUR maintaining its recovery tone while holding above the 1.3690 level, risk of further upside gain remains.

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.