EURUSD Analysis – Oct 29, 2008

EURUSD’s down trend remains and the rise from 1.2329 is treated as consolidation to the downtrend. As long as 1.3004 key resistance holds, we’d expect down trend to resume and deeper decline is still possible to 1.2000 zone after consolidation. However, above 1.3004 will indicate that a cycle bottom on daily chart has been formed at 1.2329 level and the fall from 1.4867 has completed.

For long term analysis, EURUSD remains in long term bearish movement, further fall towards 1.2000 zone to reach next cycle bottom on weekly chart is expected in a couple of weeks.

eurusd daily chart