EURUSD Analysis – May 17, 2008

EURUSD broke above 1,5594 key resistance and formed a cycle bottom at 1.5284 on daily chart. Further rise to 1.5725 area is possible, and sideways consolidation in a range between 1.5284 and 1.6019 could be expected in the next few weeks. As long as 1.6019 resistance holds, we’d expect down trend to resume and pullback to 1.5000 could be seen by the end of the down 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