Daily Forex Analysis – April 8, 2010

USDJPY Analysis.
USDJPY dropped sharply from 94.68 and the fall extends to as low as 93.15, suggesting that a cycle top has been formed on 4-hour chart. Range trading between 93.00 and 94.68 would more likely be seen in next several days. However, the price action from 94.68 is treated as consolidation of uptrend from 88.14, another rise towards 100.00 is still possible after consolidation and a break above 94.68 could signal resumption of uptrend.

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USDCHF Analysis.
USDCHF’s rise from 1.0434 extends further to 1.0768 level. Initial support is now at 1.0700 followed by 1.0670, as long as these levels hold, uptrend could be expected to continue and next target would be at 1.0850.

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EURUSD Analysis.
EURUSD continues its downward movement from 1.3590. Deeper decline to test 1.3267 previous low support is still possible later today, a breakdown below this level will indicate that the longer term downtrend from 1.5144 (Nov 25, 2009 high) has resumed, then another fall towards 1.3100 is expected.

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AUDUSD Analysis.
AUDUSD remains in uptrend from 0.9001. Further rally to test 0.9404 (Nov 16, 2009 high) is still possible in a couple of days. Support is now at the uptrend line from 0.9001 to 0.9164 and key support is at 0.9164, only fall below this level could take price back to test 0.9000 support.

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GBPUSD Analysis.
Being contained by 1.5382 previous high resistance, GBPUSD pulled back from 1.5318 and traded in a narrow range between 1.5128 and 1.5318. Support is at 1.5128, a break below this level will indicate that a cycle top has been formed at 1.5318 on 4-hour chart, then deeper decline could be seen to 1.4900 area. However, above 1.5382 key resistance will indicate that the longer term downtrend from 1.6875 (Nov 16, 2009 high) has completed at 1.4784 already.

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USDCAD Analysis.
USDCAD broke above the falling trend line on 4-hour chart, suggesting that a cycle bottom is being formed. Further rally is still possible later today and next target would be at 1.0100-1.0150 area. However, the bounce is treated as consolidation of downtrend from 1.0302, another fall towards 0.9900 is possible after consolidation.

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