EURUSD Analysis – January 1, 2011

EURUSD moved sideways in a range between 1.2969 and 1.3497. The price action in the trading range is treated as consolidation of downtrend from 1.4281, as long as 1.3497 resistance holds, another fall towards 1.2500 is still possible. However, a break above 1.3497 will indicate that the downward movement from 1.4281 has completed at 1.2969 already, then the following bullish move could bring price back towards 1.4281 previous high.

For long term analysis, EURUSD is in downtrend from 1.4281, deeper decline to 1.1500 area to reach next cycle bottom on weekly chart is possible.

eurusd daily chart