EURUSD dropped sharply from 1.5144 and the fall extended to as low as 1.4218 level. The subsequent rebound is more likely minor consolidation of downtrend. Resistance is now located at 1.4480, as long as this level holds, another fall could still be seen and next target would be at 1.4000-1.4050 area. However, above 1.4480 could indicate that a cycle bottom has been formed at 1.4218 and the fall from 1.5144 has completed, then the following uptrend could bring price back to 1.4600 or even higher.
For long term analysis, EURUSD has formed a cycle top at 1.5144 level on weekly chart. Pullback towards 1.4000 area to reach next cycle bottom is expected in next several weeks.
