EURUSD Analysis – Jan 10, 2009

EURUSD is moving to the next cycle bottom on daily chart. Initial resistance is located at 1.3797, as long as this level holds, we’d expect downtrend to continue, and target would be at 1.3100-200 area. However, above 1.3797 level will take price back to range trading between 1.3313 and 1.4719.

For long term analysis, EURUSD formed a cycle bottom at 1.2329 level on weekly chart. Consolidation in a range between 1.2329 and 1.4719 would more likely be seen in next several months.

eurusd daily chart