EURUSD Analysis – May 19, 2012

EURUSD is facing the 1.2624 support, a breakdown below this level will indicate that the long term downtrend from 1.4938 (May 4, 2011 high) has resumed, then further decline towards 1.1500 could be seen. Resistance is at 1.2900, only break above this level could bring price back to 1.3200-1.3300 area.

For long term analysis, EURUSD has formed 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