Daily Forex Analysis – May 11, 2009

GBPUSD Analysis.
Being supported by the lower border of the price channel on 4-hour chart, GBPUSD rebounded from 1.4943, suggesting a short term cycle bottom has been formed. Further rally is expected to 1.5400-1.5500 area. Initial support is at the lower border of the price channel and key support is located at 1.4943.


AUDUSD Analysis.
AUDUSD remains in uptrend from 0.6989, and the rise extends to 0.7709 level. Further rally is still possible to 0.7800 zone. Initial support is at 0.7625 followed by the rising trend line from 0.6989 to 0.7335, as long as the trend line support holds, uptrend will continue.


EURUSD Analysis.
EURUSD moved sharply last Friday and the rise from 1.2884 extends to 1.3658 level. Further rally is still possible to test 1.3738 (Mar 19 high) resistance. Consolidation is expected before breaking above this level. Initial support is at 1.3550 followed by 1.3450.


USDCHF Analysis.
USDCHF dropped sharply last Friday and the fall from 1.1418 extends further to as low as 1.1029. Deeper decline is in favor. The next target would be at 1.0900 level. Initial resistance is at 1.1120 and then 1.1200.


USDCAD Analysis.
USDCAD remains in downtrend from 1.2504. Deeper decline is in favor and the next target is at 1.1300-1.1400 area. Initial resistance is at the falling trend line on 4-hour chart. As long as the trend line resistance holds, we’d expect downtrend to continue.


USDJPY Analysis.
USDJPY formed a trading range between 97.95 and 99.64. Further pullback to test 97.95 support is possible later today. A break below this level will signal deeper decline to 97.50 level. However, the price action from 99.57 is more likely consolidation of the uptrend from 95.62. One more rise is expected to retest 101.43 (Apr 6 high) resistance after consolidation.


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