EURUSD Analysis – Jul 12, 2008

EURUSD broke above 1.5908 previous high resistance and reached 1.5945 level. Further rise to test 1.6019 (Apr 22 high) is still possible next week, a break above this level will take price to 1.6300 area. However, as long as 1.6019 resistance holds, we’d expect down trend to resume, and a break below the support of the up trend line from 1.5302 to 1.5611 will signal resumption of down trend.

For long term analysis, EURUSD formed a long term cycle top at 1.6019 on weekly chart. The price action from 1.5284 is treated as consolidation to down trend. Deeper decline to 1.4500 area to reach the next cycle bottom is expected after consolidation.

eurusd daily chart