EURUSD Analysis – December 19, 2009

EURUSD continues its bearish movement and drops sharply to as low as 1.4261 level. Deeper decline is still in favor next week and next target would be at 1.4100 area. Resistance levels are at 1.4450 and 1.4550, as long as these levels hold, downtrend from 1.5144 could be expected to continue.

For long term analysis, EURUSD has formed a cycle top at 1.5144 level on weekly chart. Pullback towards 1.4000 area to reach next cycle bottom is expected in next several weeks.

eurusd daily chart