EURUSD Analysis – May 24, 2008

EURUSD’s rebound from 1.5284 extends to as high as 1.5813. Further rise to test 1.6019 previous high resistance is still possible next week. 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 correction.

eurusd daily chart