EUR-USD Biased to the 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) -- Our outlook on EUR-USD remains lower for a likely return to the 1.3003-to-1.2975 levels. This view remains valid as long as the pair continues to hold and trade below the 1.3387 level and its long-term falling trendline.

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This suggests a decisive break and hold below the mentioned support could see the pair weakening further toward the 1.2879 level, its Jan. 23 low.

On the other hand, to annul its downside pressure, the pair will have to break and hold above the 1.3387 level. This will leave it targeting the 1.3484 level with a cut through there pushing the pair further higher toward the Dec. 2 high at 1.3547.

Further out, it will aim at its weekly 200 ema at 1.3642.

All in all, EUR remains biased to the downside short term.

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.