EUR-USD: Likely to Weaken Next Week

The euro-dollar currency pair this week wiped out its gains from the previous week and closed below key support levels at 1.3835, its Sept. 9 low, and at 1.3623, its July 12 low.

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The currency pair enters the new week on a bearish note.We expect a follow-through lower toward 1.3427, the pair's February low. A violation of that level would see the pair weaken further toward 1.3427, its February 2011 low. Further down, the next target would be 1.3382, EUR-USD's Sept. 22 low. Price hesitation could occur there and turn the pair back up, but if it failed to materialize, EUR-USD would target the 1.3300 psychological level, and then 1.3245, its Jan. 17 low.The euro-dollar currency pair's weekly relative strength index is bearish and pointing lower, suggesting further weakness. Alternatively, the next upside target will be 1.3799, the September 2011 high. A breach of that level would set the stage for more gains toward 1.3835 and then 1.3936, the pair's Sept. 9 high.All in all, the euro-dollar currency pair continues to maintain its medium-term bearishness and is likely to weaken further in the coming week..>To follow the writer on Twitter, go to http://twitter.com/fxtechstrategy.>To submit a news tip, send an email to: tips@thestreet.com.

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