EURUSD stays below a falling trend line

Franco Shao from ForexCycle.com at 12/21/09

 

EURUSD stays below a falling trend line on 4-hour chart and remains in downtrend from 1.5140. As long as the trend line resistance holds, downtrend could be expected to continue and next target would be at 1.4150-1.4200 area. Key resistance is now located at 1.4450, only rise above this level could indicate that a short term cycle bottom has been formed at 1.4261, then correction of downtrend could be seen to follow.