EURUSD Analysis – July 28, 2012

EURUSD has formed a cycle bottom at 1.2042 on daily chart. Further rally could be expected next week, and the target would be at 1.2600 area. Key resistance is at 1.2747, as long as this level holds, the rise from 1.2042 is treated as consolidation of the long term downtrend from 1.4938, another fall towards 1.1500 is still possible after consolidation.

For long term analysis, EURUSD is in downtrend from 1.4938 (2011 high). Further decline towards 1.1500 area could be expected over the next several weeks.

eurusd daily chart