EURUSD Analysis – December 24, 2011

EURUSD stays in a downward price channel on daily chart, and remains in downtrend from 1.4246. Initial resistance is at the upper line of the channel, as long as the channel resistance holds, downtrend could be expected to continue, and another fall towards 1.2500 could be seen. Key resistance is now at 1.3200, only break above this level could indicate that lengthier consolidation of downtrend is underway.

For long term analysis, EURUSD is in downtrend from 1.4939 (May 4 high). Further decline towards 1.1500 area is expected over the next several months.

eurusd daily chart