Daily Forex Analysis – January 14, 2009

USDCAD Analysis.
USDCAD rebounds further to as high as1.2339 level. Moving higher to retest 1.2394 previous high resistance is still in favor. A break above this level will signal further rally towards 1.2700 zone. Initial support is now at 1.2190 followed by 1.2150, only fall below 1.2150 level will signal consolidation of the short term uptrend.

20090114_usdcad_1

GBPUSD Analysis.
GBPUSD dropped sharply from 1.5372 and reaches as low as 1.4469 level. Further fall is still possible to retest 1.4350 previous low support. Consolidation would more likely be seen before breaking below this level. Near term resistance is now at 1.4600 followed by 1.4700, above 1.4700 will indicate that the short term downtrend from 1.5372 has completed.

20090114_gbpusd_1

USDCHF Analysis.
Being contained by the previous high resistance at 1.1277, USDCHF consolidates in a narrow range between 1.1096 and 1.1252. If 1.1277 level gives way, the next target would be at 1.1600 zone. Initial support is at 1.1096, a break down below this level will signal deeper decline to test 1.0864.

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EURUSD Analysis.
EURUSD’s short term downtrend from 1.3797 extends further to as low as 1.3140 level. Deeper decline is still in favor, and next target would be at 1.3000 zone. Initial resistance is located at 1.3300. A break above this level will signal consolidation of the downtrend.

20090114_eurusd_1

USDJPY Analysis.
USDJPY breaks above the resistance of the falling trend line from 94.61 to 91.65, suggesting that a short term cycle bottom on 4-hour chart is being formed. Key resistance is now located at 89.87, a break above this level will confirm the cycle bottom, and then further rally could be seen to 90.50 zone.

20090114_usdjpy_1

AUDUSD Analysis.
AUDUSD rebounds sharply from 0.6575 level. Sideways consolidation in a range between 0.6575 and 0.6755 would more likely be seen in next several days. Near term support is at 0.6575, only fall below this level will signal resumption of downtrend.

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