EURUSD Analysis – December 29, 2012

EURUSD stays within an upward price channel on daily chart, and remains in uptrend from 1.2661, the fall from 1.3308 is likely consolidation of the uptrend. Support is at the lower line of the channel, as long as the channel support holds, we’d expect uptrend to resume, and another rise towards 1.3500 is still possible after consolidation. On the other side, a clear break below the channel support will suggest that lengthier consolidation of the uptrend from 1.2042 is underway, then pullback to 1.2700-1.2800 area could be seen.

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 months.

eurusd daily chart