EURUSD Analysis – March 17, 2013

EURUSD’s downward movement from 1.3711 extends to as low as 1.2911. Further decline is still possible after a minor consolidation, and next target would be at 1.2750 area. Key resistance is at 1.3200, as long as this level holds, the downtrend could be expected to continue. On the upside, a break above 1.3200 resistance will indicate that the downtrend from 1.3711 has completed at 1.2911 already, then the following upward movement could bring price to 1.4000 zone.

For long term analysis, EURUSD had formed a cycle bottom at 1.2042 on weekly chart. Further rise towards 1.4500 could be expected over the next several months.

eurusd daily chart