Short Term Analysis - August 22, 2007

EURUSD rebounded from the up trend line from 1.1825 (Feb 2006 low) to 1.2483 (Oct 2006 low), sideways consolidation will be formed in a range between 1.3360 and 1.3545. Further fall towards 1.3262 previous low is expected to follow after consolidation, and a break below 1.3360 level will signal the resumption of the down trend. Near term resistance is at 1.3545, followed by 1.3609, and as long as 1.3609 resistance holds, down trend will continue. For long term analysis, EURUSD is in correction to the long term up trend. Fall towards 1.3262 previous low can be seen in the next several week. Up trend will resume after correction and rise towards 1.4500 to reach the next cycle top on weekly chart is still in favor.