EURUSD Analysis – May 8, 2010

EURUSD’s bearish movement from 1.5144 extends to as low as 1.2526 level. Deeper decline to test 1.2329 (Oct 28, 2008 low) support is still possible next week, sideways consolidation would more likely be seen before breaking below this level. Key resistance is at 1.3000, above this level will indicate that a cycle bottom has been formed on daily chart, then further rise could be seen to 1.3200-1.3400 area.

For long term analysis, EURUSD is moving towards 1.2329 previous low, a breakdown below this level could target 1.1300 area.

eurusd daily chart