EURUSD Analysis – May 5, 2012

EURUSD traded sideways in a range between 1.2975 and 1.3486 for several weeks. Another fall to re-test 1.2975 key support would likely be seen next week, a breakdown below this level could trigger another fall towards 1.2500. On the upside, a clear break above the trend line on daily chart could signal resumption of the uptrend from 1.2624, then the target would be at 1.4000 zone.

For long term analysis, EURUSD may be forming a cycle top at 1.3486 on weekly chart. Further decline towards 1.1500 area is expected over the next several months.

eurusd daily chart