EURUSD formed a cycle bottom at 1.2587 level on daily chart and the bounce extended to as high as 1.3158. Further rise towards 1.3333 previous high is still possible next week. However, the bounce from 1.2587 is treated as correction of downtrend from 1.3333, as long as 1.3333 key resistance holds, we’d expect downtrend to resume and another fall to 1.2400 would more likely be seen.
For long term analysis, EURUSD formed a cycle top at 1.3333 level on weekly chart. Pullback to 1.2200 is expected in next several weeks. However, the fall is treated as correction of uptrend from 1.1876, another rise towards 1.4000 is still possible after correction.
