EURUSD Analysis – May 11, 2008

EURUSD is forming a cycle bottom at 1.5284 on daily chart. Bounce to retest 1.5700 resistance is expected before breaking below 1.5284 level. The rise from 1.5284 will be treated as correction to the down trend. Key resistance is at 1.6019, only break of this level will signal resumption of the long term up trend.

For long term analysis, EURUSD broke below 1.5342 long term key support and is now in down trend. Deeper decline to 1.5000 area to reach the next cycle bottom on weekly chart is expected after consolidation.

eurusd daily chart