EURUSD Analysis – August 4, 2012

EURUSD remains in downtrend from 1.3486, the rise from 1.2042 is treated as consolidation of the downtrend. Further rise would likely be seen next week, and the target would be at1.2600 area. Key resistance is at 1.2747, as long as this level holds, we’d expect downtrend to resume, and another fall towards 1.1500 is still possible after consolidation, only break above this level could signal completion of the downtrend.

For long term analysis, EURUSD is in downtrend from 1.4938 (2011 high). Further decline towards 1.1500 area could be expected over the next several weeks.

eurusd daily chart