EURUSD Analysis – April 17, 2010

EURUSD stays in a trading range between 1.3267 and 1.3817. As long as 1.3817 resistance holds, the price action in the trading range is treated as consolidation of downtrend from 1.5144 and another fall towards 1.3000 area is still possible after consolidation. However, a break above 1.3817 key resistance will indicate that the fall from 1.5144 has completed at 1.3267 already, then the following uptrend could take price back to 1.4500 area.

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, a break above 1.3817 will indicate that a cycle bottom has been formed.