EURUSD Analysis – Feb 1, 2009

EURUSD failed to test 1.3385 key resistance and dropped below 1.2764 previous low, suggesting that the pair is back to medium downtrend from 1.4719. Further fall is now in favor, and the next target would be at 1.2500-1.2600 area. Key resistance is at 1.3385, only rise above this level will signal reversal of the medium downtrend.

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