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Daily Forex Analysis – May 22, 2012

EURUSD Analysis.
EURUSD has formed a cycle bottom at 1.2642 on 4-hour chart. Range trading between 1.2642 and 1.2900 would likely be seen in a couple of days. As long as 1.2900 resistance holds, the bounce is treated as consolidation of the downtrend from 1.3283, and another fall to re-test 1.2624 (Jan 13 low) support could be expected. On the upside, a break above 1.2900 resistance will indicate that the downtrend from 1.3283 has completed at 1.2642 already, then the following upward movement could bring price back to 1.3200-1.3300 area.

20120522_eurusd_1

USDJPY Analysis.
USDJPY remains in downtrend from 84.17 (Mar 15 high). Another fall is expected after a minor consolidation, and next target would be at 78.50 area. Resistance is at 79.70, only break above this level could indicate that lengthier consolidation of the downtrend is underway.

20120522_usdjpy_1

GBPUSD Analysis.
GBPUSD may be forming a cycle bottom at 1.5732 on 4-hour chart. Range trading between 1.5732 and 1.5950 would likely be seen over the next several days. However, the rise is treated as consolidation of the downtrend from 1.6301, a breakdown below 1.5732 could trigger another fall to 1.5500 area.

20120522_gbpusd_1

AUDUSD Analysis.
AUDUSD breaks above the downward trend line on 4-hour chart, suggesting that a cycle bottom is being formed at 0.9795. Range trading between 0.9795 and 1.0050 would likely be seen over the next several days. Support is at 0.9795, only break below this level could trigger another fall to 0.9700 zone.

20120522_audusd_1

USDCAD Analysis.
USDCAD stays above a upward trend line on 4-hour chart, and remains in uptrend from 0.9799, the pullback from 1.0246 is treated as consolidation of the uptrend. As long as the trend line support holds, we’d expect uptrend to resume, and another rise towards 1.0400 is possible, only a clear break below the trend line support could signal completion of the uptrend.

20120522_usdcad_1

USDCHF Analysis.
USDCHF has formed a cycle top at 0.9500 on 4-hour chart. Range trading between 0.9300 and 0.9500 would likely be seen over the next several days. Resistance is at 0.9500, only break above this level could trigger another rise towards 1.0000.

20120522_usdchf_1

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