EURUSD Analysis – Jan 24, 2009

EURUSD remains in downtrend, and the fall from 1.4719 extends to as low as 1.2764 level. Deeper decline to 1.2650 zone to reach the next cycle bottom on daily chart is still possible, and the next cycle bottom is nearing. Key resistance is now located at 1.3385, a break above this level will confirm the cycle bottom, and then the following rebound will bring price to 1.3950-1.4000 area.

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