EURUSD failed to break below 1.2975 key support, and traded in a range between 1.2975 and 1.3486 for several weeks. Lengthier sideways movement in the range could be expected next week. Another fall to re-test 1.2975 support would likely be seen after the sideways movement, a breakdown below this level could signal resumption of the long term downtrend from 1.4939, then further decline towards 1.2500 could be seen. Resistance is at 1.3385, only break above this level could trigger another rise towards 1.4000.
For long term analysis, EURUSD may be forming a cycle top at 1.3486 on weekly chart. Further decline towards 1.1500 area is expected over the next several months.
