EURUSD Analysis – December 31, 2011

EURUSD continued its downward movement from 1.4246, and the fall extended to as low as 1.2858. Resistance remains at the upper border of the price channel on daily chart, as long as the channel resistance holds, downtrend could be expected to continue, and next target would be at 1.2500 area. Key resistance is located at 1.3196, only break above this level could indicate that the downtrend from 1.4246 is complete.

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