Daily Forex Analysis – January 8, 2010

EURUSD Analysis.
EURUSD stays in a rising price channel on 4-hour chart, and the price action in the channel is more likely consolidation of downtrend from 1.5144. Lengthier consolidation is still in favor and one more rise towards the upper border of the price channel is expected later today. Initial support is located at the bottom of the price channel and key support is now at 1.4257, a break below this level will indicate that the downtrend has resumed and another fall towards 1.4000 could be seen.


USDJPY Analysis.
USDJPY broke above 93.21 resistance, suggesting resumption of uptrend from 87.37. Further rally is still possible later today after a minor consolidation and next target would be at 94.50 area. On the down side, another fall to re-test the support of the rising trend line from 87.37 to 91.25 is possible later today. Anyway, as long as the trend line support holds, the pair is treated as in uptrend.


GBPUSD Analysis.
GBPUSD’s downtrend from 1.6238 extended further to as low as 1.5896. Deeper decline is still in favor and target is at 1.5708 (Oct 13 low). Resistance is at the falling trend line on 4-hour chart now at 1.5990. Key resistance is at 1.6061, only rise above this level could bring price back to re-test 1.6238 resistance.


AUDUSD Analysis.
AUDUSD stays above a rising trend line on 4-hour chart and remains in uptrend from 0.8734, and the pullback from 0.9264 is treated as consolidation of uptrend. As long as the trend line support holds, we’d expect uptrend to resume and one more rise towards 93.50 area is still possible. However, a clear break below the trend line support will indicate that a short term cycle top has been formed at 0.9264 and the rise from 0.8734 has completed.


USDCHF Analysis.
USDCHF stays in a falling price channel and remains in downward trend from 1.0507. As long as the channel resistance holds, one more fall towards 1.0200 is still possible. Key resistance is at 1.0421, a break above this level will indicate that the fall from 1.0507 has completed at 1.0244 already, then another rise towards 1.0800 is expected to follow.


USDCAD Analysis.
USDCAD remains in downtrend from 1.0576. Deeper decline is still in favor and next target is at 1.0250 area. Resistance is at 1.0375 followed by 1.0425, as long as these levels hold, downtrend from 1.0576 could be expected to continue.


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