EURUSD pulled back from 1.5062

Franco Shao from ForexCycle.com at 10/31/09

 

Being contained by the upper border of the rising price channel on daily chart, EURUSD pulled back from 1.5062, suggesting that a cycle top is being formed. Further fall towards the bottom of the price channel is expected next week, a clear break below this channel support will indicate that the uptrend from1.3748 has completed at 1.5062 level already, then deeper decline is expected to test 1.4484 key support. However, as long as the channel support holds, another rise towards 1.5200 area is still possible.

For long term analysis, EURUSD remains in long term bullish movement from 1.2456, further rise is still possible to 1.5200-1.5500 area. However, a break below 1.4484 key support will indicate that a long term cycle top has been formed on weekly chart.