EURUSD Analysis – May 21, 2008

EURUSD formed a cycle bottom at 1.5284 on daily chart. Further rally may be expected in the next several days, and the next cycle top would be at 1.5800 area. However, the rise from 1.5284 would possibly be correction to the long term down trend. 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