EURUSD Analysis – August 18, 2012

EURUSD remains in downtrend from 1.3486, the rise from 1.2042 is treated as consolidation of the downtrend. Further rise to 1.2600 area to complete the consolidation would likely be seen. Key resistance is located at 1.2747, as long as this level holds, we’d expect downtrend to resume, and one more fall towards 1.1500 is still possible. Initial support is at 1.2240, a breakdown below this level could signal resumption 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