EURUSD Analysis – May 21, 2009

EURUSD breaks above 1.3738 resistance, suggesting that the uptrend from 1.2884 has resumed. Further rally could be seen to 1.4150-1.4200 area. Near term support is at the rising trend line on daily chart now at 1.3500, key support is located at 1.3423, as long as this level holds, we’d expect the uptrend from 1.2884 to continue.

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