Daily Forex Analysis – January 16, 2009

EURUSD Analysis.
EURUSD’s downtrend from 1.3797 extends further to as low as 1.3026 level. Deeper decline is still possible in a couple of days, and short term target would be at 1.2900 zone. Key resistance is now located at 1.3336, a break above this level will indicate that the fall from 1.3797 has completed and a short term cycle bottom has been formed on 4-hour chart, and then consolidation in a range between 1.3026 and 1.3500 could be seen.


GBPUSD Analysis.
GBPUSD breaks above 1.4706 key resistance, suggesting that the short term downtrend from 1.5372 has completed. Further rebound could be seen to 1.5000 zone in a couple of days. Initial support is at 1.4469, only fall below this level will signal deeper decline towards 1.4100 level.


USDCAD Analysis.
USDCAD stays in the rising price channel and remains in uptrend. Further rise is still possible to 1.2800 zone. Initial support is at the lower border of the price channel on 4-hour chart. As long as the channel support holds, we’d expect uptrend to continue.


USDCHF Analysis.
USDCHF breaks above 1.1277 previous high resistance, suggesting that the uptrend from 1.0366 has resumed, further rally towards 1.1500 is possible in a couple of days. Key support is located at 1.1096, a break down below this level will signify that the rise from 1.0864 has terminated, and then pullback to retest 1.0864 could be seen to follow.


USDJPY Analysis.
USDJPY has formed a short term cycle bottom at 88.47 level on 4-hour chart. Consolidation in a range between 88.47 and 91.55 is expected in next several days. Near term support is at 88.47,  a break below this level will indicate that the downtrend from 94.61 has resumed.


AUDUSD Analysis.
AUDUSD consolidates in a range between 0.6537 and 0.6810. Further rise to test 0.6810 resistance could be seen later today. A break above this level will suggest that the fall from 0.7267 has completed and a short term cycle bottom has been formed at 0.6537 on 4-hour chart.


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