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Short Term Analysis

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EURUSD breaks above the down trend line

Wed, Oct 8 2008, 01:52 GMT
by Franco Shao

ForexCycle.com


EURUSD breaks above the resistance of the down trend line, and might be forming a short term cycle bottom at 1.3443 level on 4-hour chart. Sideways consolidation in a range between 1.3443 and 1.3906 would be seen in a couple of days. As long as 1.3906 resistance holds, the rise from 1.3443 is treated as correction to down trend, and deeper decline could be seen to 1.3200 zone after consolidation. Only rise above 1.3906 will indicate that the fall from 1.4867 has completed.


EURUSD 4H Chart


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