EURUSD Analysis – May 16, 2009

Being contained by 1.3738 previous high resistance, EURUSD pulls back from 1.3721, suggesting that a short term cycle top is being formed. Consolidation below 1.3738 level is expected in a couple of week and the pullback could be seen to 1.3200-1.3300 area. Key resistance is at 1.3738, above this level will indicate that the uptrend from 1.2884 has resumed and then further rally could be seen to 1.4150-1.4200 area.

For long term analysis, EURUSD stays in a trading range between 1.2329 (Oct 28, 2008 low) and 1.4719 (Dec 18, 2008 high). Rebound towards 1.4400-1.4500 area is expected in next several weeks.

eurusd daily chart