Daily Forex Analysis – May 14, 2009

USDCAD Analysis.
Being supported by 1.1464 (Nov 5, 2008 low), USDCAD rebounds from 1.1474 level and breaks above the price channel resistance, suggesting that a short term cycle bottom has been formed at 1.1474 level on 4-hour chart. Range trading between 1.1474 and 1.1900 is expected in next several days. However, the rise from 1.1474 is treated as consolidation of downtrend from 1.3063 (Mar 9 high), further fall is still possible after consolidation.

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GBPUSD Analysis.
GBPUSD breaks below the rising price channel on 4-hour chart and is testing 1.5069 support, a break below this level will signal deeper decline to test 1.4943 key support, below this level will indicate that the uptrend from 1.4397 has completed at 1.5352 already, and then further fall to 1.4800-1.4850 area could be seen.

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AUDUSD Analysis.
AUDUSD has formed a short term cycle top at 0.7709 level on 4-hour chart. The pair is now testing 0.7507 support, below this level will suggests that the uptrend from 0.6989 has completed and then deeper decline to 0.7350-0.7400 area could be seen to follow.

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EURUSD Analysis.
Being contained by the previous high resistance at 1.3738 (Mar 19 high), EURUSD pulls back from 1.3721 level, suggesting that a short term cycle top is being formed and pullback towards the lower border of the price channel is possible. Key resistance is now at 1.3721, a break above this level will signal further rally to 1.4000-1.4100 area.

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USDCHF Analysis.
USDCHF is testing 1.1105 key resistance, a break above this level will indicate that a short term cycle bottom has been formed and the downtrend from 1.1418 has completed at 1.0977 already. If 1.1105 resistance holds, deeper decline could be seen to 1.0800 zone.

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USDJPY Analysis.
USDJPY breaks below 95.62 previous low support. Deeper decline is now in favor and the next target is at 94.00-94.50 area. Initial resistance is at 96.25 followed by 96.70, as long as 0.9670 level holds, we’d expect the downtrend to continue.

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