Daily Forex Analysis – May 7, 2010

USDCHF Analysis.
USDCHF has formed a cycle top at 1.1245 level on 4-hour chart. Sideways movement in a range between 1.1000 and 1.1245 would more likely be seen in a couple of days. However, the sideways movement is treated as consolidation of uptrend from 1.0434, as long as the rising trend line support holds, one more rise to 1.3400 area is still possible, and a break above 1.1245 could signal resumption of uptrend.


AUDUSD Analysis.
AUDUSD drops sharply to as low as 0.8715 level, suggesting that the rise from 0.8577 (Feb 5 low) has completed at 0.9381 already. Now the bounce from 0.8715 is treated as correction of downtrend from 0.9325. Another fall towards 0.8577 could be seen after correction. Resistance is at 0.8960 followed by 0.9000.


USDCAD Analysis.
USDCAD continues its uptrend from 0.9930 and the rise extends further to as high as 1.0735 level. Another rise to test 1.0779 (Feb 5 high) is expected after a minor consolidation. Support is at 1.0420 followed by 1.0370.


GBPUSD Analysis.
GBPUSD breaks below 1.4784 (Mar 1 low), suggesting that the long term downtrend from 1.7042 (Aug 5 high) has resumed. Deeper decline could be seen to 1.4500 after a minor consolidation. Resistance is now at 1.4960 followed by 1.5000.


EURUSD Analysis.
EURUSD remains in downtrend from 1.3691 and the fall extends to as low as 1.2526. A cycle bottom is being formed on 4-hour chart and minor consolidation would more likely be seen in a couple of days. However another fall is still possible after consolidation and a break below 1.2526 could signal resumption of downtrend, then the next target would be at 1.2400 area.


USDJPY Analysis.
USDJPY drops sharply to as low as 88.25. The subsequent bounce suggests that a cycle bottom has been formed on 4-hour chart. Another rise towards 94.98 would more likely be seen after consolidation.


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