EURUSD Analysis – May 1, 2010

EURUSD’s downtrend from 1.5144 was limited by the lower boundary of the falling price channel on daily chart. However, the bounce from 1.3114 is more likely consolidation of downtrend. Another fall to 1.3000 area is still possible after consolidation. Resistance is at 1.3420 followed by the upper border of the price channel now at 1.3570, as long as the channel resistance holds, we’d expect downtrend to continue.

For long term analysis, EURUSD is moving to 1.3000 area to reach next cycle bottom on weekly chart and the next cycle bottom is nearing, a break above 1.3817 will indicate that the cycle bottom has been formed.

eurusd daily chart