EURUSD Analysis – January 8, 2011

After a sideways consolidation, EURUSD continued its downward movement from 1.4281 and reached as low as 1.2904 level. Further decline is still possible next week and next target would be at 1.2600-1.2700 area. Key resistance is at 1.3497, only break above this level could indicate that the fall from 1.4281 is complete.

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