EURUSD Analysis – Dec 20, 2008

EURUSD fails to test the resistance at 1.4867 (Sep 22 high) and pulls back from 1.4719 level, suggesting that a cycle top has been formed on daily chart. Consolidation in a range between 1.3500 and 1.4500 is expected. Only rise above 1.4719 level will signal resumption of long term up trend.

For long term analysis, EURUSD formed a cycle bottom at 1.2329 level on weekly chart. Further rise is expected to 1.5500 zone in next several weeks.

eurusd daily chart