Daily Forex Analysis – May 6, 2009

USDCHF Analysis.
USDCHF rebounds from 1.1245, suggesting that the pair is back to range trading between 1.1245 and 1.1432. The price action in the trading range is treated as consolidation of the downtrend from 1.1602, deeper decline is still possible to 1.1150-1.1200 area after consolidation. Key resistance is now at 1.1432, above this level will indicate that the fall from 1.1602 has completed, and then further rally could be seen to 1.1550 zone.

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USDCAD Analysis.
USDCAD remains in downtrend and the fall from 1.2265 extends to as low as 1.1677 level. Deeper decline is still possible to 1.1500 zone in next several days. Initial resistance is at 1.1830 and key resistance is located at 1.1898, rise above 1.1830 will signal consolidation of the downtrend, and then range trading could be seen between 1.1677 and 1.1898.

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USDJPY Analysis.
USDJPY formed  a short term cycle top at 99.57 level on 4-hour chart. Range trading between 98.00 and 99.57 is expected in a couple of days. However, the price action from 99.57 is more likely consolidation of the uptrend from 95.62, further rally is possible to test 101.43 (Apr 6 high) resistance after consolidation.

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EURUSD Analysis.
EURUSD pulls back from 1.3436, suggesting that the pair is back to range trading between 1.3191 and 1.3436. However, the price action in this range is treated as consolidation of the uptrend from 1.2965, further rally is still possible to 1.3500 zone after consolidation.

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AUDUSD Analysis.
AUDUSD remains in uptrend from 0.6989 and the pullback from 0.7478 is more likely consolidation of uptrend. Further rally is still possible to 0.7600 zone after consolidation. Initial support is at the lower border of the rising price channel now at 0.7325, as long as this level holds, we’d expect uptrend to continue.

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GBPUSD Analysis.
GBPUSD breaks above 1.5066 resistance. Further rally is possible to 1.5300-1.5400 area. Initial support is at the rising trend line on 4-hour chart, as long as the trend line support holds, we’d expect the uptrend from 1.4397 to continue.

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