EURUSD Analysis – Oct 1, 2008

EURUSD pulls back sharply to 1.4008 level. Deeper decline is still possible to test 1.3881 previous low support in a couple of days. As long as this level holds, the fall from 1.4867 is treated as correction to up trend, and one more rise above 1.4867 is still in favor. However, below 1.3881 will signal resumption of down trend, and target would be at 1.3500 zone.

For long term analysis, EURUSD formed a cycle bottom at 1.3881 on weekly chart. Consolidation in a range between 1.3881 and 1.6038 (July 15 high) is expected in next few months. However, fall below 1.3881 will signal deeper fall towards 1.3500 level.

eurusd daily chart