EURUSD Analysis – Nov 8, 2008

EURUSD traded in a range between 1.2329 and 1.3290 for two weeks and the price action from 1.2329 is more likely forming a sideways consolidation to down trend. Further fall towards 1.2000 zone is now in favor after consolidation. Initial resistance is at 1.3115 followed by 1.3290. Long term key resistance is at 1.3785, above this level will indicate that the down trend from 1.6038 (July 15 high) has completed.

For long term analysis, EURUSD remains in long term down trend. Deeper decline to 1.2000 zone to reach the next cycle bottom on weekly chart is still possible.

eurusd daily chart