EURUSD Analysis – December 5, 2009

EURUSD dropped below the lower border of the rising price channel on daily chart. Range trading between 1.4626 and 1.5144 would more likely be seen next week. As long as 1.4626 support holds, the price action in the trading range may be treated as consolidation of uptrend from 1.3748, one more rise towards 1.5200-1.5250 area is still possible. However, a breakdown below 1.4626 key support will indicate that the rise from 1.3748 has completed at 1.5144 level already, then deeper decline could be seen to 1.4300 or even 1.4000.

For long term analysis, EURUSD remains in long term bullish movement from 1.2456, further rise is still possible to 1.5200-1.5500 area. However, next cycle top on weekly chart is nearing, a break below 1.4626 key support will indicate that a long term cycle top has been formed.

eurusd daily chart