Daily Forex Analysis – April 13, 2009

USDJPY Analysis.
USDJPY might be forming a short term cycle bottom at 99.31 level on 4-hour chart. Key resistance is located at 100.85, a break above this level will confirm the cycle bottom. Range trading between 99.31 and 101.43 is expected in next several days. The price action in this range is treated as consolidation of the uptrend from 93.53 (Mar 19 low), we are waiting for a break of 101.43 to confirm the resumption of the uptrend.

20090413_usdjpy_1

EURUSD Analysis.
EURUSD stays below the falling trend line from 1.3581 to 1.3335 and remains in short term downtrend from 1.3581. Deeper decline is still possible to 1.2900-1.3000 area. Initial resistance is at the falling trend line and key resistance is located at 1.3335, as long as this level holds, we’d expect the downtrend to continue.

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AUDUSD Analysis.
AUDUSD breaks above 0.7227 resistance and reaches as high as 0.7232 level, suggesting that the uptrend from 0.6284 (Mar 4 low) has resumed. Further rally could be seen to 0.7300-0.7350 area in next several days. Initial support is now at 0.7170 and followed by 0.7032, as long as 0.7032 level holds, uptrend will continue.

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USDCHF Analysis.
USDCHF stays above the rising trend line from 1.1240 and 1.1426 and remains in short term uptrend from 1.1240. As long as the trend line support holds, we’d expect the uptrend to continue and further rally could be seen to 1.1650-1.1700 area in a couple of days. However, below 1.1541 will indicate that a short term cycle top is being formed and deeper decline could be seen to test 1.1426 level.

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USDCAD Analysis.
No changed in our view, USDCAD is in consolidation of the downtrend from 1.2714, range trading between 1.2191 and 1.2483 is still in favor, and rebound to 1.2350-1.2400 area to reach the next cycle top on 4-hour chart is expected in a couple of days.

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GBPUSD Analysis.
GBPUSD continues its range trading between 1.4580 and 1.4778. The price action in this range is treated as consolidation of the short term downtrend from 1.4957. Deeper decline could be seen to 1.4290 level after consolidation. Initial resistance is now at 1.4780, as long as this level holds, we’d expect downtrend to continue.

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