Daily Forex Analysis – February 2, 2010

USDCAD Analysis.
USDCAD’s bounce from 1.0556 extended to as high as 1.0720 only. The subsequent pullback suggests lengthier consolidation of uptrend from 1.0224 is underway. More sideways movements are expected in a couple of days. As long as 1.0556 support holds, we’d expected uptrend to resume and one more rise towards 1.0800 is still possible. However, a breakdown below 1.0556 key support will indicate that the rise from 1.0224 has completed at 1.0720 level already, then the following downtrend could take price  to 1.0450 area.

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USDJPY Analysis.
USDJPY’s bounce from 89.13 extends further to as high as 90.93 level, suggesting that a short term cycle bottom has been formed at 89.13 on 4-hour chart. Now the bounce from 89.13 could possibly be resumption of uptrend from 84.82 (Nov 27, 2009 low). Another rise to re-test 93.75 is possible in next several days, however, a clear break above the upper border of the falling price channel is needed to confirm the resumption of uptrend.

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EURUSD Analysis.
EURUSD stays below a falling trend line on 4-hour chart and remains in downtrend from 1.4579, and the bounce from 1.3852 is treated as minor consolidation of downtrend. Another fall towards 1.3600 is still possible in a couple of days and a break below 1.3852 will signal resumption of downward trend. Resistance remains at the falling trend line, followed by 1.4025.

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AUDUSD Analysis.
AUDUSD remains in downtrend from 0.9327. The bounce from 0.8788 is more likely consolidation of downtrend. As long as the resistance of the falling trend line on 4-hour chart holds, downtrend could be expected to continue and one more fall to test 0.8734 support is possible. Only a clear break above the trend line would indicate that the fall from 0.9327 has completed at 0.8788 level already.

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USDCHF Analysis.
USDCHF stays above a rising trend line on 4-hour chart and remains in uptrend from 1.0132, and the fall from 1.0640 is more likely consolidation of uptrend. One more rise towards 1.0800 is expected after consolidation. Support levels are at the trend line now at 1.0530, below here, next level would be at 1.0500.

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GBPUSD Analysis.
Being contained by 1.5829 support, GBPUSD bounces from 1.5850. However, the bounce is more likely consolidation of downtrend from 1.6456. Another fall to re-test 1.5829 is expected after consolidation. Initial resistance is now at 1.5990 followed by 1.6080.

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