Euro-USD Firms, Points 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 ( fxtechstrategy.com) - With the euro-U.S. dollar pair now strengthening following a halt of its two-day weakness started from the 1.3913 level, further upside risk is seen toward the 1.3913 to 1.3937 range.

Above here will bring further gains toward the big psychological level of 1.4000 and then the Sept. 6 high of 1.4283. Its daily RSI is bearish and pointing higher.

On the downside, the risk to this analysis will be for the pair to return below the 1.3144 level, its October low, annulling its entire corrective strength and then targeting the 1.3000 level, its big psychological level. Price hesitation ahead of or at this level could occur and turn the pair back up. If that level is taken out, further weakness should shape up toward 1.2875.

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

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.