Daily Forex Analysis – May 13, 2010

USDCHF Analysis.
USDCHF continues its sideways movement in a range between 1.0923 and 1.1245. However, the sideways movement is more likely consolidation of uptrend from 1.0434. As long as the support of the rising trend line holds, one more rise to 1.1400 is still possible and a break above 1.1245 could signal resumption of uptrend, only a clear break below the trend line support could suggest that the upward movement from 1.0434 has completed.

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EURUSD Analysis.
EURUSD stays below a falling trend line on 4-hour chart and remains in downtrend from 1.3691. As long as the trend line resistance holds, downtrend could be expected to continue and a breakdown below 1.2526 could trigger another fall towards 1.2329 (Oct 28, 2008 low).

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AUDUSD Analysis.
AUDUSD formed a cycle top at 0.9077 level on 4-hour chart. Correction of uptrend from 0.8715 is expected in a couple of days. As long as 0.8715 support holds, another rise is possible after correction and another rise to 0.9200-0.9250 would more likely be seen.

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USDCAD Analysis.
No changed in our view, USDCAD’s bearish movement extends to as low as 1.0148. Consolidation of downtrend is needed and rebound to 1.0350-1.0400 area would more likely be seen. Near term resistance levels are at 1.0230 and 1.0300.

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GBPUSD Analysis.
GBPUSD trades in a range between 1.4720 and 1.5053. Another fall towards 1.4475 previous low would more likely be seen. Resistance is at 1.5053, only rise above this level could trigger another rise to 1.5200 or even 1.5300.

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USDJPY Analysis.
USDJPY’s bounce extended to as high as 93.53. The subsequent fall is treated as consolidation of uptrend. Range trading between 91.00 and 93.53 would more likely be seen in a couple of days. Resistance is located at 93.53, a break above this level could indicate that the uptrend has resumed, then next target would be at 94.50 area.

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