EUR-USD Higher, Set for Further Strength

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 EUR-USD pair closed higher for a second week in a row since halting its recent declines. However, it will have to set a foothold above the 1.3288 level to convince the market of further recovery. If this is confirmed, further upside offensive could develop toward the 1.3483 level.

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A breach will pave the way for a move further higher toward its Dec. 2 high at 1.3547 where a violation will target its weekly 200 exponential moving average at 1.3642.

Conversely, the risk to this analysis will be a return to the 1.3003 level traded the past week followed by the 1.2975 level. A break of that level would push the pair further lower toward the Jan. 23 low of 1.2879. Further down, support lies at the 1.2620 level.

All in all, EUR remains vulnerable to the downside though halting its weakness.

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.