After breaking below 1.2329 (Oct 28, 2008 low) previous low, EURUSD bounced from 1.2144, suggesting that a cycle bottom is being formed on daily chart. Range trading between 1.2144 and 1.3000 would more likely be seen in a couple of weeks. As long as 1.3000 resistance holds, we would expected downtrend from 1.5144 to resume and deeper decline could be seen to 1.1300 area. However, a break above 1.3000 resistance will indicate that the fall from 1.5144 has completed, then the following uptrend could bring price to 1.5000 area.
For long term analysis, EURUSD broke below 1.2329 (Oct 28, 2008 low), suggesting deeper decline towards 1.13000 area. Only rise above 1.3000 resistance could indicate that a cycle bottom had been formed at 1.2144 level on weekly chart.
