EURUSD Analysis – Feb 7, 2009

No changed in our view, EURUSD remains in medium downtrend. Deeper decline is still possible next week. The next target would be at 1.2500-1.2600 area. Key resistance is now located at 1.3329, only rise above this level will indicate that the fall from 1.4719 has completed, and then the following rebound will bring price to 1.4000 zone.

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