Daily Forex Analysis – May 17, 2010

AUDUSD Analysis.
AUDUSD drops sharply to as low as 0.8731 and is testing 0.8715 key support, a breakdown below this level will indicate that the downtrend from 0.9381 has resumed, then deeper decline could be seen to 0.8600 area. Initial resistance is now at 0.8838, only rise above this level could trigger another rise to 92.00 area.

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GBPUSD Analysis.
GBPUSD continues its downward movement and breaks below 1.4475 previous low. Deeper decline is still possible in a couple of days and next target would be at 1.4000 area. Resistance is at 1.4570, as long as this level holds, downtrend from 1.5053 will continue.

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USDCHF Analysis.
USDCHF’s uptrend from 1.0923 extends to as high as 1.1445 level. Further rise is still possible in a couple of days and next target would be at 1.1500-1.1550 area. Support is at 1.1280, as long as this level holds, uptrend will continue.

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EURUSD Analysis.
EURUSD continues its sharp drop from 1.3093 and the fall extends to as low as 1.2233 level. Deeper decline is still in favor and next target would be at 1.2100 area. Resistance is now at 1.2460, as long as this level holds, downtrend will continue.

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USDCAD Analysis.
USDCAD has formed a cycle bottom at 1.0110 level on 4-hour chart. Further rally is still in favor and next target would be at 1.0500-1.0550 area. Support is at 1.0340, as long as this level holds, uptrend from 1.0110 could be expected to continue.

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USDJPY Analysis.
USDJPY is in consolidation of uptrend from 88.25. Range trading between 91.50 and 93.62 would more likely be seen in a couple of days. Another rise towards 94.98 previous high could be expected after consolidation and a break above 93.62 could signal resumption of uptrend.

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