EUR-USD: May Be Forming Short-Term Bottom

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) -- Having halted its declines this past week, the euro-dollar currency pair may have signaled that a temporary bottom may be forming.

If this is confirmed, the currency pair could mount a further upside offensive toward 1.3483.

A breach would pave the way for EUR-USD to move further higher toward its Dec. 2, 2011 high at 1.3547.

A violation of that level will leave the euro-dollar currency pair to target its weekly 200-day exponential moving average at 1.3642.

Conversely, the risk to this analysis will be a return to the 1.3003 level traded this past week, followed by 1.2975.

If a break is seen at the latter level, it will push the pair still lower, toward 1.2879, its Jan. 23 low.

Further down, support lies at the 1.2620 level.

-- 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.