EURUSD Analysis – May 29, 2010

EURUSD remains in downtrend and the price action from 1.2144 is more likely consolidation of downtrend. Rang trading between 1.2144 and 1.2671 is expected to continue next week. Support is at 1.2144, a breakdown below this level will indicate that the downtrend from 1.5144 has resumed, then deeper decline could be seen to 1.1300 area. Resistance is at 1.2671, above this level could bring price back to test 1.3000 key resistance.

For long term analysis, EURUSD broke below 1.2329 (Oct 28, 2008 low), suggesting deeper decline towards 1.13000 area. Only rise above 1.3000 could trigger another rise to 1.5000 area.

eurusd daily chart