EURUSD remains in medium term downtrend from 1.4719. The rebound from 1.2512 is treated as consolidation of the downtrend. Key resistance is now located at 1.3093, as long as this level holds, we’d expect downtrend to resume and deeper decline could be seen to test 1.2329 (Oct 28, 2008 low) support. However, above 1.3093 key resistance will indicate that a cycle bottom has been formed at 1.2512 on daily chart and the fall from 1.4719 has completed.
For long term analysis, EURUSD formed a cycle bottom at 1.2329 level on weekly chart. Consolidation in a range between 1.2329 and 1.4719 would more likely be seen in next several months.
