Daily Forex Analysis – March 3, 2010

EURUSD Analysis.
After touching 1.3443 previous low, EURUSD bounced from 1.3435, suggesting that a short term cycle bottom is being formed on 4-hour chart. Further rise to test 1.3691 is expected later today, a break above this level will confirm the cycle bottom, then further rally could be seen to 1.3750-1.3800 area. However. The price action from 1.3443 is still treated as consolidation of downtrend from 1.4579, one more fall towards 1.3300 is still possible after consolidation.


USDCHF Analysis.
USDCHF failed to test 1.0898 previous high resistance and pulled back from 1.0887, suggesting that a short term cycle top is being formed on 4-hour chart. Another fall towards 1.0608 previous low would more likely be seen, and a breakdown below 1.0694 support could confirm such case. Resistance is at 1.0898, only break above this level will trigger another rally towards 1.1000 area.


GBPUSD Analysis.
GBPUSD remains in downtrend from 1.5815 and the bounce from 1.4784 is more likely consolidation of downtrend. Initial resistance is at 1.5110 followed by the falling trend line from 1.5815 to 1.5575. As long as the trend line resistance holds, one more fall to 1.4600-1.4650 area is still possible.


USDCAD Analysis.
USDCAD broke below 1.0369 previous low and the fall from 1.0679 extended to as low as 1.0308 level. Another fall towards 1.0224 (Jan 14 low) is still possible later today. Initial resistance is at 1.0370 followed by 1.0410, as long as these levels hold, downtrend could be expected to continue.


USDJPY Analysis.
After a minor consolidation, USDJPY breaks below 88.57 previous low, suggesting that the downtrend from 92.14 has resumed. Resistance is now at 89.49, only rise above this level could indicate that the fall from 92.14 has completed.


AUDUSD Analysis.
AUDUSD is facing 0.9070 resistance, a break above this level could trigger another rally to 0.9200 area. However, as long as 0.9070 level holds, the bounce from 0.8801 is treated as correction of downtrend from 0.9070 and one more fall to 0.8700-0.8750 area is possible.


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