EURUSD traded in a narrow range

Franco Shao from ForexCycle.com at 01/02/10

 

EURUSD traded in a narrow range between 1.4218 and 1.4457 for several days. As long as 1.4457 resistance holds, downtrend from 1.5144 could be expected to continue and another fall towards 1.4000 area is still possible. However, a break above 1.4457 key resistance could indicate that a cycle bottom has been formed at 1.4218 on daily chart, and the fall from 1.5144 has completed, then further rally could be seen to 1.4600 or even 1.4700.

For long term analysis, EURUSD has formed a cycle top at 1.5144 level on weekly chart. Pullback towards 1.4000 area to reach next cycle bottom is expected in next several weeks.