EURUSD Analysis – January 8, 2012

EURUSD stays in a downward price channel on daily chart, and remains in downtrend from 1.4246. Further decline is still possible over the next several days and next target would be at 1.2500 area. Resistance is at the upper line of the channel, only a clear break above the channel resistance could indicate that the fall from 1.4246 is complete.

For long term analysis, EURUSD is in downtrend from 1.4939 (May 4 high). Further decline towards 1.1500 area is expected over the next several months.

eurusd daily chart