EURUSD Analysis – July 2, 2011

EURUSD stayed in a trading range between 1.3969 and 1.4696 for several weeks. The sideways movement could be expected to continue in a couple of weeks. Another fall towards 1.3500 would more likely be seen after consolidation, and a breakdown below 1.3969 will signal resumption of downtrend. However, a break above 1.4696 will indicate that the long term uptrend from 1.1876 (2010 low) has resumed, then the target would be at 1.5500 area.

For long term analysis, EURUSD had formed a cycle top at 1.4939 on weekly chart. Further fall towards 1.1500 is possible in next several months.

eurusd daily chart