Daily Forex Analysis – March 20, 2013

USDCAD Analysis.
USDCAD breaks above the downward trend line on 4-hour chart, suggesting that the downtrend from 1.0341 had completed at 1.0180 already. Further rise to test 1.0341 previous high resistance would likely be seen, a break above this level will indicate that the longer term uptrend from 0.9815 (Jan 11 low) has resumed, then the following upward movement could bring price to 1.0500 area. Support is at 1.0230, followed by 1.0180, only break below these levels could signal completion of the uptrend from 0.9815.


USDCHF Analysis.
No changed in our view, USDCHF is now in downtrend from 0.9567, the rise from 0.9379 is likely correction of the downtrend. As long as 0.9567 key resistance holds, another fall could be expected after correction, and next target would be at 0.9300 area.


USDJPY Analysis.
USDJPY remains in downtrend from 96.70. another fall towards the lower line of the price channel on 4-hour chart could be expected. Key resistance is at 96.70, only break above this level could trigger another rise towards 100.00.


EURUSD Analysis.
EURUSD continues its downward movement from 1.3711, and the fall extends to as low as 1.2843. Further decline is still possible after a minor consolidation, and next target would be at 1.2800 area. Initial resistance is at 1.3000, only break above this level could bring price back to re-test 1.3161 key resistance.


AUDUSD Analysis.
AUDUSD is forming a cycle top at 1.0413 on 4-hour chart. Deeper decline could be expected, and the target would be at the lower line of the price channel on 4-hour chart. On the upside, as long as the channel support holds, the fall from 1.0413 could be treated as consolidation of the uptrend from 1.0115, another rise towards 1.0500 is still possible, only a clear break below the channel support could signal completion of the uptrend.


GBPUSD Analysis.
GBPUSD is in consolidation of the downtrend from 1.6339 (Jan 2 high). Range trading between 1.4831 and 1.5250 would likely be seen over the next several days. Another fall could be expected after consolidation, a breakdown below 1.4831 could signal resumption of the downtrend.