Daily Forex Analysis – July 7, 2011

USDJPY Analysis.
USDJPY remains in uptrend from 79.69, the price action from 81.26 is treated as consolidation of uptrend. Support is at the uptrend line on 4-hour chart, as long as the trend line support holds, we’d expect uptrend to resume, and one more rise to 81.60-81.80 area is still possible. However, a clear break below the trend line will indicate that the rise from 79.69 had completed at 81.26 already, then the following downward move could bring price to 78.00 zone.

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EURUSD Analysis.
EURUSD’s downward move from 1.4577 extended to as low as 1.4286. Further fall  would likely be seen after a minor consolidation, and the target would be at 1.4200 area. Resistance is at 1.4370, as long as this level holds, downtrend will continue.

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GBPUSD Analysis.
GBPUSD had formed a cycle top at 1.6139 on 4-hour chart. Range trading between 1.5912 would likely be seen in a couple of days. Key support is at 1.5912, a breakdown below this level could signal resumption of downtrend.

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AUDUSD Analysis.
AUDUSD formed a cycle top at 1.0789 on 4-hour chart. Range trading between 1.0635 and 1.0789 is expected in a couple of days. Resistance is at 1.0789, only break above this level could trigger another rise towards 1.1011 previous high.

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USDCHF Analysis.
USDCHF formed a cycle top at 0.8525 on 4-hour chart. The fall from 0.8525 would possibly be resumption of long term downtrend from 1.1730 (2010 high). Further fall towards 0.8275 previous low could be seen after a minor consolidation, a breakdown below this level will target 0.8000.

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USDCAD Analysis.
USDCAD might be forming a cycle top at 0.9694 on 4-hour chart. Further fall to test 0.9579 is expected in a couple of days, a breakdown below this level will signal resumption of downtrend from 0.9912, then next target would be at 0.9500 area.

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