Daily Forex Analysis – April 5, 2010

EURUSD Analysis.
EURUSD is testing the support of the uptrend line from 1.3267 to 1.3384, as long as the trend line support holds, we’d expect uptrend to resume and another rise towards 1.3817 previous high is still possible. However, a clear break below the trend line support could indicate that a cycle top has been formed at 1.3590 level on 4-hour chart and the rise from 1.3267 has completed, then the following downtrend could take price back to re-test 1.3267 support.

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USDJPY Analysis.
USDJPY continues its upward movement and the rise from 89.76 extended further to as high as 94.68 level. Another rise towards 96.00 is expected after a minor consolidation. Initial support is at the uptrend line on 4-hour chart and key support is now at 93.60, only fall below this level could indicate that the rise from 89.76 has completed.

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AUDUSD Analysis.
AUDUSD is forming a sideways consolidation between 0.9130 and 0.9215. As long as 0.9130 support holds, one more rise towards 0.9404 (Nov 16, 2009 high) is possible. However, below 0.9130 could trigger another fall to 90.50 area.

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GBPUSD Analysis.
Being contained by 1.5382 resistance, GBPUSD pulled back from 1.5297, suggesting that a cycle top is being formed on 4-hour chart. Another fall towards 1.4900 would more likely be seen in next several days. However, a break above 1.5297 level will indicate that the rise from 1.4798 has resumed, then one more rise to test 1.5382 key resistance could be seen.

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USDCHF Analysis.
USDCHF formed a cycle bottom at 1.0434 level on 4-hour chart. Further rally to 1.0680-1.0700 area is possible later today. As long as 1.0750 key resistance holds, we’d expect downtrend to resume and another fall below 1.0434 would more likely be seen.

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USDCAD Analysis.
Being contained by 1.0061 previous low support, USDCAD bounced from 1.0066 level, suggesting that a cycle bottom is being formed on 4-hour chart. Further rally is expected to 1.0200 in a couple of days. Key support is at 1.0061, a breakdown below this level could indicate that the downtrend from 1.0779 (Feb 5 high) has resumed, then next target would be at 0.9900 area.

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