EURUSD Analysis – May 7, 2008

Being contained by the key support at 1.5342, EURUSD rebounded from 1.5360. Sideways consolidation in a range between 1.5342 and 1.5700 is expected in the next few days. Pullback to retest 1.5342 is still possible after consolidation and a break of this level will signal reversal to the up trend. Initial resistance is at 1.5700, if this resistance gives way, further rally to test 1.6019 could be seen.

For long term analysis, EURUSD is in long term up trend. Long term key support is located at 1.5342, a break of this level will indicate that the up trend from 1.4309 (Dec 20, 2007 low) has completed, and pull back to 1.4500 area is expected to follow.

eurusd daily chart