EURUSD Analysis – April 3, 2010

EURUSD stays in a falling price channel on daily chart and remains in downtrend from 1.5144. As long as the channel resistance holds, the price action from 1.3267 is treated as consolidation of downtrend, and one more fall towards 1.3000 is still possible after consolidation. On the other side, a clear break above the channel resistance could trigger another rise to test 1.3817 key resistance, above this level will indicate that the downward movement from 1.5144 has completed at 1.3267 already, then the following uptrend could take price back to 1.4200 or even 1.4400.

For long term analysis, EURUSD is moving to 1.3000 area to reach next cycle bottom on weekly chart and the next cycle bottom is nearing.

eurusd daily chart