EURUSD Analysis – October 6, 2012

EURUSD may be forming a cycle bottom at 1.2803 on daily chart. Range trading between 1.2803 and 1.3171 would likely be seen next week. Support is now at 1.2803, as long as this level holds, the price action in the range is treated as consolidation of the uptrend from 1.2042, and another rise towards 1.3500 is possible after consolidation. Resistance is at 1.3171, a break above this level could signal resumption of the uptrend.

For long term analysis, EURUSD had formed a cycle bottom at 1.2042 on weekly chart. Further rise towards 1.4000 could be expected over the next several weeks.

eurusd daily chart