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Daily Forex Analysis – May 20, 2009

USDCHF Analysis.
USDCHF drops down from 1.1263 and the fall has extended to as low as 1.1069 level. Further fall is still possible to test 1.0977 previous low support, a break below this level will signal deeper decline to 1.0800-1.0900 area. However, the price action from 1.0977 is more likely consolidation of the downtrend from 1.1740, as long as 1.0977 support holds, we’d expect uptrend to resume and one more rise towards 1.1300 is still possible.

20090520_usdchf_1

AUDUSD Analysis.
AUDUSD breaks above 0.7709 previous high resistance, suggesting that the uptrend from 0.6952 (Apr 20 low) has resumed and further rally could be seen to 0.7900-0.8000 area. Initial support is at 0.7700 followed by 0.7650, as long as 0.7650 support holds, we’d expect the short term uptrend from 0.7450 to continue.

20090520_audusd_1

GBPUSD Analysis.
GBPUSD breaks above 1.5352 previous high resistance, suggesting that the uptrend from 1.4397 has resumed. Further rally is expected to 1.5600-1.5700 area. Initial support is at 1.5425 followed by 1.5350. Key support is now located at 1.5059, only fall below this level will indicate that the rise from 1.4397 has completed.

20090520_gbpusd_1

EURUSD Analysis.
EURUSD breaks above 1.3664 resistance, suggesting that a short term cycle bottom has been formed at 1.3423 level on 4-hour chart. Further rise is possible to test 1.3721 previous high resistance. However, the price action from 1.3721 is more likely consolidation of uptrend from 1.2884, as long as 1.3721 resistance holds, we’d expect downtrend to resume and another pullback towards 1.3300 is possible.

20090520_eurusd_1

USDCAD Analysis.
USDCAD formed a short term cycle top at 1.1814 level on 4-hour chart. Further fall to test 1.1474 previous low support is expected later today. A break down below this level will indicate that the medium term downtrend from 1.3063 (Mar 9 high) has resumed, and then deeper decline could be seen to 1.1200 zone.

20090520_usdcad_1

USDJPY Analysis.
USDJPY formed a short term cycle bottom at 94.56 level on 4-hour chart and is now in short term uptrend. The fall from 96.69 is treated as correction of uptrend. Further rise towards 98.00 is now in favor.

20090520_usdjpy_1

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