EURUSD traded in a narrow range

Franco Shao from ForexCycle.com at 02/16/10

After breaking below 1.3585 previous low, EURUSD traded in a narrow range. Deeper decline is still in favor and next target would be at 1.3400 area. Resistance is at the upper border of the falling price channel on 4-hour chart and key resistance is at 1.3838, a break above this level will indicate that the fall from 1.4579 has completed at 1.3531 already, then the following bounce could take price back to 1.4000 or even higher.