EURUSD is testing the previous high resistance at 1.5843, above this level we may see further rally to 1.5950. Long term resistance is located at 1.6019, rise above this level will indicate that sideways consolidation in a range between 1.5284 and 1.6019 has completed, and long term up trend has resumed. As long as the pair stays below 1.6019 major resistance, we’d expect down trend to resume, and pullback to retest 1.5284 is still possible.
For long term analysis, EURUSD formed a long term cycle top at 1.6019 on weekly chart. The price action from 1.5284 is treated as consolidation to down trend. Deeper decline to 1.4500 area to reach the next cycle bottom is expected after consolidation.
