Daily Forex Analysis – July 7, 2009

EURUSD Analysis.
EURUSD breaks below 1.3889 key support and reaches as low as 1.3876 level, suggesting that the pair is now in short term downtrend from 1.4197. The price action in the trading range between 1.3876 and 1.4027 is treated as consolidation of downtrend. As long as 1.4027 resistance holds, we’d expect downtrend to resumed, and deeper decline is expected to re-test 1.3748 previous low support. However, a break above 1.4027 resistance will indicate lengthier correction of downtrend is underway, then further rebound could be seen to 1.4100-1.4150 area.

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AUDUSD Analysis.
AUDUSD’s downtrend extends further to 0.7878 level and the price action in the trading range between 0.7878 and 0.8006 is treated as consolidation of downtrend. As long as 0.8006 resistance holds, we’d expect deeper decline later today. However, above 0.8006 key resistance will indicate that a short term cycle bottom has been formed at 0.7878 level on 4-hour chart, then further rally could be seen to test 0.8155 resistance.

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USDCAD Analysis.
USDCAD break above 1.1636 previous high resistance, suggesting that the uptrend from 1.0784 has resumed. Further rally is still possible to 1.7000-1.1750 area in a couple of days. Near term support is at the lower border of the rising price channel, and key support is at 1.1418, only fall below this level will indicate that the uptrend from 1.0784 has completed.

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USDJPY Analysis.
USDJPY breaks below 94.87 previous low support. Deeper decline is still possible to 94.20 zone in a couple of days. Initial resistance is at 95.50, as long as this level holds, the downtrend from 96.97 will continue.

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GBPUSD Analysis.
GBPUSD breaks below 1.6187 support and reaches as low as 1.6094 level. Deeper decline is still possible to 1.5900 zone in a couple of days. Key resistance is now at 0.6400, above this level will indicate that a short term cycle bottom has been formed at 1.6094 level on 4-hour chart and the downtrend from 1.6748 has completed.

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USDCHF Analysis.
USDCHF is in range trading between 1.0712 and 1.1021. Deeper decline is possible to 1.0750 in a couple of days, and one more rise above 1.1021 would more likely be seen after consolidation.

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