EUR-USD: Vulnerable to Downside

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) -- The euro-dollar currency pair looks vulnerable to the downside after it followed through lower in the latest week on the back of the previous week's declines.

Further weakness is likely toward 1.2975, where a violation, if seen, will push EUR-USD further lower toward 1.2879, its Jan. 23 low.

A breach there would turn the focus to 1.2620.

EUR-USD's weekly relative strength index is bearish and pointing lower, supporting this view.

On the upside, the pair will have to break and hold above the 1.3483 level to reverse its present downside offensive and bring further strength toward its Dec. 2 high at 1.3547.

A breach of that level will leave the pair to target its weekly 200-day exponential moving average at 1.3642. All in all, EUR-USD remains vulnerable to the downside in coming sessions.

-- Written by Mohammed Isah.

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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.