EURUSD Analysis – December 3, 2011

Being supported by 1.3146 previous low, EURUSD rebounded from 1.3212. However, the bounce would possibly be consolidation of downtrend from 1.4246, one more fall to re-test 1.3146 support is still possible next week, a breakdown below this level will indicate that the longer term downtrend from 1.4939 (May 4 high) has resumed, then further fall could be seen to 1.1500 area. Key resistance is at 1.3600, only break above this level could indicate that the fall from 1.4246 is complete.

For long term analysis, EURUSD had formed a cycle bottom at 1.3146 on weekly chart. Further rise towards 1.5000 would likely be seen over the next several weeks.

eurusd daily chart