Daily Forex Analysis – February 19, 2010

USDCAD Analysis.
USDCAD breaks above the falling price channel on 4-hour chart, suggesting that a short term cycle bottom is being formed at 1.0397. Range trading between 1.0397 and 1.0590 is expected in a couple of days. However, the bounce from 1.0397 is treated as consolidation of downtrend from 1.0779, one more fall towards 1.0300 area is still possible after consolidation.

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EURUSD Analysis.
EURUSD breaks below 1.3531 previous low, suggesting that the downward trend from 1.4579 has resumed. Another fall towards 1.3200 is expected in next several days. Resistance is at the upper border of the price channel on 4-hour chart. Only rise above the channel resistance could indicate that the fall from 1.4579 has completed.

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USDCHF Analysis.
USDCHF breaks above 1.0827 previous high and reaches as high as 1.0889, suggesting resumption of uptrend from 1.0132. Another rise is now in favor and target would be at 1.1000 or even 1.1200. support is at 1.0800 followed by the lower border of the price channel.

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GBPUSD Analysis.
As expected, GBPUSD has finished its consolidation started from 1.5534 and drops sharply to as low as 1.5407 level. Deeper decline is now in favor and next target would be at 1.5200 or even 1.5000. Resistance is at 1.5520 followed by 1.5620, as long as these levels hold, downtrend from 1.5815 will continue.

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USDJPY Analysis.
USDJPY’s upward movement extends to as high as 92.08 level. Further rally is still possible later today and next target would be at 92.50 area. Support is now at 90.70, as long as this level holds, uptrend from 88.57 could be expected to continue.

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AUDUSD Analysis.
AUDUSD formed a short term cycle top at 0.9035 level on 4-hour chart. Sideways movement is expected in a range between 0.8800 and 0.9035. However, the price action from 0.9035 is treated as consolidation of uptrend from 0.8577, another rise towards 0.9300 is still possible after consolidation.

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For long term forex analysis.

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