EURUSD Weekly Analysis – October 26, 2014

EURUSD failed to break above the resistance of the downward price channel on daily chart, indicating that the pair remains in downtrend from 1.3993, and the rise from 1.2500 could be treated as consolidation of the downtrend. Range trading between 1.2500 and 1.2886 would likely be seen in a couple of weeks. Key resistance is now at 1.2886, as long as this level holds, the downtrend could be expected to resume, and next target would be at 1.2000 area. Support is at 1.2500, a breakdown below this level will signal resumption of the downtrend. On the upside, a break of 1.2886 resistance will indicate that the downtrend had completed at 1.2500 already, then further rise to 1.3100 area could be seen.

eurusd chart