Daily Forex Analysis – April 26, 2010

AUDUSD Analysis.
AUDUSD consolidates in a range between 0.9157 and 0.9381. Lengthier sideways movement in the range is still possible in a couple of days. As long as 0.9157 support holds, we’d expect uptrend to resume, and another rise towards 0.9500 is possible after consolidation. However, a breakdown below 0.9157 support could indicate that the uptrend from 0.8577 (Feb 5 low) has completed at 0.9381 already, then the fallow downtrend could take price back to 0.8500 area.

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EURUSD Analysis.
EURUSD broke above the falling trend line on 4-hour chart, suggesting that a cycle bottom has been formed at 1.3202 level, and the fall from 1.3691 has completed. Range trading between 1.3202 and 1.3500 is expected in a couple of days.

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USDCAD Analysis.
USDCAD remains in downtrend and the bounce from 0.9930 is more likely consolidation of downtrend. Range trading between 0.9930 and 1.0064 is possible in a couple of days. A break below 0.9930 will indicate that downtrend has resumed and another fall towards 0.9800 could be seen.

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USDJPY Analysis.
USDJPY formed a cycle bottom at 91.60 level on 4-hour chart and the bounce from 91.60 is more likely resumption of longer term uptrend from 88.14 (Mar 4 low). Further rally to test 94.68 resistance is expected in a couple of days. Support is now at the uptrend line, as long as the trend line support holds, uptrend could be expected to continue.

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GBPUSD Analysis.
GBPUSD stayed in a trading range between 1.5191 and 1.5522 for several days. As long as 1.5191 support holds, we’d expect uptrend to resume and one more rise towards 1.5800 is possible after consolidation. Only fall below 1.5191 could indicate that the bounce from 1.4798 has completed at 1.5522 already.

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USDCHF Analysis.
USDCHF is testing the support of the rising trend line on 4-hour chart. A clear break below the trend line support will indicate that a cycle top has been formed at 1.0849 and the rise from 1.0501 has completed, then the following bearish movement could take price back to re-test 1.0434 support. However, as long as the trend line support holds, we’d expect uptrend to continue and another rise towards 1.0898 (Feb 19 high) is still possible.

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