EURUSD breaks above the downward trend line on daily chart, suggesting that a cycle bottom has been formed at 1.2288. Initial resistance is at 1.2670, as long as this level holds, the price action from 1.2288 could be treated as consolidation of the downtrend from 1.3486, and another fall towards 1.20000 is still possible. Key resistance is at 1.2800, only break above this level could signal completion of the downtrend, then further rise to 1.3200 could be seen.
For long term analysis, EURUSD has formed a cycle top at 1.3486 on weekly chart. Further decline towards 1.1500 area is expected over the next several months.
