EURUSD Analysis – Jan 3, 2009

EURUSD is testing the support of 1.3825 level. A break down below this level will signal deeper decline towards 1.3500. However, as long as 1.3825 support holds, we’d expect sideways consolidation to continue between 1.3825 and 1.4719, and rebound to1.4500 zone would more likely be seen next week.

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