EURUSD is forming a sideways consolidation in a range between 1.4629 and 1.4977. As long as price stays below 1.4977 level, we’d expect further decline to test the support of the up trend line from 1.1825 (Feb 27, 2006 low) to 1.3360 (Aug 16, 2007 low), now at 1.4425 level. However, a break of 1.4977 will indicate that the fall from 1.6038 has completed and lengthier correction would bring price back to 1.5160 – 1.5340 area.
For long term analysis, EURUSD broke below 1.5284 (May 8 low) support and formed a double top pattern on weekly chart. Deeper decline towards 1.4000 level to reach next cycle bottom on weekly chart is now in favor.
