Daily Forex Analysis – February 26, 2009

USDJPY Analysis.
USDJPY’s short term uptrend from 92.50 extends to as high as 97.86 level. Near term support is now at 96.35, as long as this level holds, we’d expect uptrend to continue and next target would be at 99.00 zone. However, below 96.35 level will indicate that the rise from 92.50 has completed and consolidation of the medium term uptrend from 87.12 could be seen to follow.

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GBPUSD Analysis.
GBPUSD breaks below 1.4250 key support, suggesting that a short term cycle top has been formed at 1.4661 level on 4-hour chart. Deeper decline to test 1.4093 previous low support is expected later today, a break below this level will signal further fall towards 1.3800 zone.

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EURUSD Analysis.
EURUSD traded in a range between 1.2662 and 1.2991. Near term support is located at 1.2662, a break below this level will signal deeper decline to test 1.2512 previous low. Key resistance is now at 1.2991, only rise above this level will suggest that the fall from 1.4719 (Dec 18, 2008 high) has completed.

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AUDUSD Analysis.
AUDUSD is in a trading range between 0.6248 and 0.6849. The rebound from 0.6331 is more likely a rising wedge on 4-hour chart. Near term support is located at the lower border of the wedge now at 0.6425, a break below this level will indicate that the rebound from 0.6331 has completed and deeper decline could be seen to 0.6100 zone.

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USDCAD Analysis.
USDCAD breaks above 1.2541 key resistance, suggesting that a short term cycle bottom has been formed at 1.2356 level on 4-hour chart. Further rally is still possible to test 1.2672 previous high resistance. A break above this level will signal further rise to 1.2900 zone. Key support is now at 1.2356, below this level will indicate that the uptrend from 1.2024 (Jan 28 low) has completed and the following downtrend will take price back to 1.1900 area.

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USDCHF Analysis.
USDCHF stays in a trading range between 1.1459 and 1.1883. Near term resistance is located at 1.1883, a break above this level will signal further rally to 1.2000 zone. Key support is now located at 1.1459, below this level will indicate that the rise from 1.0366 (Dec 29, 2008 low) has terminated.

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