Daily Forex Analysis – March 10, 2010

USDCAD Analysis.
USDCAD’s downtrend extended further to as low as 1.0235 level. Deeper decline to test 1.0224 (Jan 14 low) is still possible later today. Bounce would more likely be seen before breaking below this level. Key resistance is now at 1.0319, above this level will suggest that a short term cycle bottom has been formed on 4-hour chart, then further rally could be seen to 1.0450-1.0500 area. However, below 1.0224 could indicate that the long term downtrend from 1.3063 (Mar 9, 2009 high) has resumed, then another fall could be seen to 1.0000 or even lower.


GBPUSD Analysis.
GBPUSD had formed a short term cycle top at 1.5195 level on 4-hour chart. Now the fall from 1.5195 could possibly be resumption of downtrend. Deeper decline towards 1.4784 is expected later today, a breakdown this level could trigger another fall towards 1.4500 area. Key resistance is now at 1.5195, only rise above this level will indicate that the fall from 1.6456 (Jan 19 high) has completed, then the following uptrend could take price further to 1.5400-1.5500 area.


EURUSD Analysis.
EURUSD traded in a narrow range between 1.3530 and 1.3735 for several days. One more rise towards 1.3838 key resistance is still possible. As long as this level holds, the price action from 1.3435 is treated as consolidation of downtrend from 1.4579 (Jan 13 high), another fall towards 1.3300 is possible after consolidation. However, a break above 1.3838 level will indicate that the fall from 1.4579 has completed at 1.3435 already.


USDCHF Analysis.
USDCHF moved sideways in a range between 1.0648 and 1.0809 for several days. Another fall towards 1.0608 is expected. As long as this level holds, the price action from 1.0898 is treated as consolidation of uptrend from 1.0132, one more rise towards 1.1000 is possible after consolidation. Only fall below 1.0608 could indicate that the rise from 1.0132 has completed at 1.0898 already.


USDJPY Analysis.
USDJPY is forming a short term cycle top at 90.67 level on 4-hour chart. Another fall towards 88.14 is expected in next several days. Resistance is at 90.67 followed by the falling trend line from 93.75 to 92.14.


AUDUSD Analysis.
AUDUSD remains in uptrend from 0.8801. As long as the support of the rising price channel holds, we’d expect uptrend to continue and next target would be at 0.9200-0.9300 area. Only fall below the lower border of the price channel could take price back to 88.50-89.00 area.


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