EURUSD Analysis – February 6, 2010

EURUSD continues its downward movement and the fall from 1.5144 extends further to as low as 1.3585 level. Deeper decline is still possible next week and next target would be at 1.3300-1.3400 area. Resistance remains at the falling trend line on daily chart, only a clear break above the trend line resistance could indicate that the fall from 1.5144 has completed.

For long term analysis, EURUSD has formed a cycle top at 1.5144 level on weekly chart. Fall towards 1.3000 area to reach next cycle bottom is expected in next several weeks.

eurusd daily chart