Daily Forex Analysis – May 16, 2011

USDCHF Analysis.
USDCHF ran in a rising price channel on 4-hour chart, and remains in uptrend from 0.8553. Now the pair had reached the upper border of the channel, minor consolidation of uptrend would likely be seen later today, and another rise towards 0.9000 is still possible after consolidation. Support is at the lower border of the channel, only a clear break below the channel support could indicate that the rise from 0.8553 is complete.

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GBPUSD Analysis.
GBPUSD continued its downward movement, and the fall from 1.6516 extended to as low as 1.6147. Further decline is still possible later today, and next target would be at 1.6050 area. Initial resistance is at 1.6325, only break above this level could indicate that a cycle bottom is being formed on 4-hour chart.

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EURUSD Analysis.
EURUSD’s downtrend from 1.4939 extended to as low as 1.4067. Key resistance is now at 1.4339, as long as this level holds, downtrend could be expected to continue, and next target would be at 1.3950 area. On the other side, a break above 1.4339 will indicate that a cycle bottom has been formed on 4-hour chart, then minor consolidation of downtrend could be seen.

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USDJPY Analysis.
USDJPY remains in short term uptrend from 79.58, the fall from 81.32 is treated as consolidation of uptrend. As long as 79.58 key support holds, one more rise towards 83.00 is still possible after consolidation.

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USDCAD Analysis.
USDCAD broke above 0.9721 resistance, suggesting that the uptrend from 0.9444 had resumed. Further rise could be seen after a minor consolidation, and target would be at the upper border of the price channel on 4-hour chart.

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AUDUSD Analysis.
AUDUSD broke below 1.0536 support, suggesting that the downtrend from 1.1011 had resumed. Deeper decline is still possible in a couple of days, and next target would be at 1.0400 area. Resistance is at 1.0700, as long as this level holds, downtrend will continue.

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