Daily Forex Analysis – May 8, 2009

AUDUSD Analysis.
AUDUSD might be forming a short term cycle top at 0.7615 level on 4-hour chart. Pullback towards the lower border of the rising price channel is expected later today. As long as the channel support holds, the fall from 0.7615 is treated as consolidation of the uptrend from 0.6989. However, a clear break below the channel support will indicate that the rise from 0.6989 has completed at 0.7615 already, and then deeper decline could be seen to test 0.7335 key support.

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EURUSD Analysis.
After breaking above 1.3436 resistance, EURUSD pulls back from 1.3468 level. However further rally to 1.3500 zone to reach the next short term cycle top on 4-hour chart is still possible in a couple of days. Initial support is at the lower border of the rising price channel and key support is located at 1.3191, below this level will indicate that the uptrend from 1.2884 has completed, and the following downtrend will bring price back to 1.3000-1.3050 area.

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USDCHF Analysis.
Being contained by 1.1432 key resistance, USDCHF drops sharply from 1.1418 level. As long as 1.1432 resistance holds, we’d expect deeper decline to 1.1200 zone to reach the next short term cycle bottom on 4-hour chart. However, above 1.1432 will indicate that the downtrend from 1.1740 has completed, and the following uptrend will take price to 1.1550 zone.

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USDCAD Analysis.
USDCAD’s downtrend remains and the price action below 1.1824 is treated as consolidation of downtrend. Deeper decline is still possible in a couple of days. The next target would be at 1.1500 zone. Near term resistance is at 1.1824, as long as this level holds, downtrend will continue.

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USDJPY Analysis.
After breaking above 99.57 previous high, USDJPY pulls back from 99.64 level, suggesting that the pair remains in sideways consolidation of the uptrend from 95.62. Further pullback to 98.00-98.50 area would more likely be seen before the resumption of uptrend.

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GBPUSD Analysis.
GBPUSD drops sharply from 1.5196, suggesting that a short term cycle top has been formed on 4-hour chart. The pair is now testing the support of lower border of the price channel, below the channel support support will signal deeper decline to 1.4750-1.4800 area.

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