Daily Forex Analysis – January 22, 2009

EURUSD Analysis.
EURUSD remains in downtrend. The rebound from 1.2824 is treated as consolidation of the downtrend. Moving sideways in a range between 1.2824 and 1.3150 would more likely be seen in a couple of days. Key resistance is now located at 1.3385, a break above this level will indicate that the medium term downtrend from 1.4719 has completed, and the following rebound will take price to 1.4000 zone.

20090122_eurusd_1

USDJPY Analysis.
USDJPY formed a short term cycle top at 91.29 and dropped sharply to as low as 87.12 level. Deeper decline is still possible in next several days. Next target would be at 86.00 zone. Key resistance is at 91.29, above this level will indicated the the fall from 94.61 has completed.

20090122_usdjpy_1

USDCAD Analysis.
USDCAD breaks below the support of the rising price channel, suggesting that a short term cycle top on 4-hour chart is being formed at 1.2765 level. Key support is located at 1.2400, a break down below this level will confirm the cycle top, and the following downtrend will bring price back to 1.2000 zone. Near term resistance is at 1.2765, above this level will signal further rally to 1.2900 level.

20090122_usdcad_1

GBPUSD Analysis.
GBPUSD’s downtrend from 1.4980 extends further to as low as 1.3621 level. The rebound from 1.3621 is treated as consolidation of the downtrend. Deeper decline is still possible and next target would be at 1.3500 zone. Near term resistance is now at 1.4250, as long as this level holds, the downtrend from 1.5372 will continue.

20090122_gbpusd_1

USDCHF Analysis.
USDCHF remains in uptrend. Further rise is still possible to 1.1800 level in a couple of days. Initial support is now at 1.1380, as long as this level holds, we’d expect uptrend to continue. However, below this level will indicate that a short term cycle top is being formed, and pullback towrds1.1200 is expected to follow.

20090122_usdchf_1

AUDUSD Analysis.
AUDUSD remains in downtrend from 0.7267. The rebound from 0.6454 is treated as consolidation of the downtrend. Deeper decline is still possible, and target would be at 0.6300 zone. Key resistance is located at 0.6840, only rise above this level will indicate the the medium downtrend from 0.7267 has completed.

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