EURUSD is test the support of the up trend line from 1.1825 (Feb 27, 2006 low) to 1.3360 (Aug 16, 2007 low). Breaking below the trend line support will signal deeper decline towards 1.4000 zone. If the trend line support holds, rebound to test 1.4908 key resistance is expected, a break of this level will indicate that a cycle bottom on daily chart has been formed and further rise could be seen to 1.5250 level.
For long term analysis, EURUSD broke below 1.5284 (May 8 low) support and formed a double top pattern on weekly chart. Deeper decline towards 1.4000 level to reach next cycle bottom on weekly chart is expected.
