EURUSD Analysis – August 29, 2010

EURUSD’s fall extended to as low as 1.2587. Key resistance is at 1.2921, as long as this level holds, downtrend is expected to continue and next target would be at 1.2500 area. However, above 1.2921 will indicate that the fall from 1.3333 has completed at 1.2587 already, then further rise towards 1.3333 previous high could be seen.

For long term analysis, EURUSD formed a cycle top at 1.3333 level on weekly chart. Pullback to 1.2200 is expected in next several weeks. However, the fall is treated as correction of uptrend from 1.1876, another rise towards 1.4000 is still possible after correction.

eurusd daily chart