Daily Forex Analysis – January 18, 2010

AUDUSD Analysis.
After touching 0.9325 resistance, AUDUSD pulled back to 0.9174. A double top pattern is being formed on 4-hour chart and neck line is located at 0.9170, a break below this level will indicate that a short term cycle top has been formed and the uptrend from 0.8734 has completed, then deeper decline could be seen to 0.9000 or even 0.8850. resistance area is around 0.9325, only a clear break above this area will indicate that the uptrend from 0.8734 has resumed, then further rally could be seen to re-test 0.9404 (Nov 16, 2009 high) resistance.

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USDCHF Analysis.
USDCHF is testing the resistance of the upper border of the falling price channel on 4-hour chart. A clear break above the channel resistance will indicate that the downtrend from 1.0507 has completed at 1.0132 already. However, as long as the channel resistance holds, one more fall below 1.0132 is still possible.

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USDCAD Analysis.
Being contained by 1.0206 (Oct 15 low) support, USDCAD rebounded from 1.0224 last week. Further rally to test the resistance of falling trend line from 1.0745 to 1.0413 is possible later today. A clear break above the trend line resistance could signal further rise to 1.0350-1.0400 area. As long as 1.0413 key resistance holds, downtrend from 1.0745 could be expected to continue and decline to 1.0000 level is in favor.

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EURUSD Analysis.
EURUSD formed a short term cycle top at 1.4579 level on 4-hour chart last week. Now the fall from 1.4579 could possibly be resumption of downtrend from 1.5144 (Nov 25, 2009 high). Deeper decline is now in favor and target is at 1.4218 previous low support. Initial resistance is at 1.4395 followed by 1.4420, as long as these levels hold, downtrend from 1.4579 will continue.

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USDJPY Analysis.
USDJPY is testing the support of the lower border of the rising price channel on 4-hour chart. If the channel support gives way, deeper decline could be seen to 89.50 area. Key resistance is now located at 92.04, a break above this level will indicate that the uptrend from 84.82 has resumed, then the following uptrend could bring price to 95.00 area.

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GBPUSD Analysis.
GBPUSD remains in uptrend from 1.5896 and the fall from 1.6354 is more likely minor consolidation of uptrend. One more rise to 1.6400-1.6450 area is still possible in a couple of days. Support is located at the bottom of the rising price channel on 4-hour chart, as long as the channel support holds, uptrend could be expected to continue.

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