EURUSD Analysis – June 19, 2010

EURUSD broke above the price channel on daily chart. Further rise to test 1.2671 key resistance is expected. A break above this level will indicate that the downtrend from 1.5144 has completed at 1.1876 already, then next target would be at 1.3500 area. As long as 1.2671 level holds, the price action from 1.2144 is treated as consolidation of downtrend and one more fall to 1.1700 is still possible.

For long term analysis, EURUSD broke below 1.2329 (Oct 28, 2008 low), suggesting deeper decline towards 1.13000 area, however, a break above 1.2671 could turn price back to 1.5000 area.

eurusd daily chart