EURUSD Analysis – Aug 6, 2008

EURUSD’s down trend remains and the fall from 1.6038 extends further to as low as 1.5445 level. Deeper decline to test 1.5284 previous low support is still possible in next several days. Near term resistance is at 1.5630, a break of this level will signal consolidation to down trend. Key resistance is located at 1.5768, only rise above this level will take price back to test 1.6038 resistance.

For long term analysis, EURUSD is forming a double top pattern. Sideways consolidation would more likely be seen. A break below 1.5284 (May 8 low) support will signal deeper decline towards 1.4500 level.

eurusd daily chart