EURUSD Analysis – Sep 20, 2008

EURUSD is in correction to down trend. Further rise to test 1.4705 resistance could be seen next week. As long as 1.4705 resistance holds, we’d expect down trend to resume and deeper decline is still possible to 1.3500 zone after correction. However, a break of 1.4705 resistance will indicate that the down trend from 1.6038 has completed.

For long term analysis, EURUSD is in long term bearish movement. Further fall could be seen to continue, and target would be at 1.3500 followed by 1.3000 level. On the other side, the pair might be forming a cycle bottom at 1.3881 on weekly chart, a break above 1.4705 key resistance will confirm the cycle bottom.

eurusd daily chart