Daily Forex Analysis – June 4, 2010

USDCAD Analysis.
USDCAD remains in downtrend from 1.0852 and the fall extends to as low as 1.0333 level. Deeper decline is still possible later today and target is the lower border of the price channel on 4-hour chart. Resistance is at the falling trend line from 1.0852 to 1.0571, as long as the trend line resistance holds, downtrend will continue. However, a clear break above the trend line resistance will suggest that lengthier consolidation of downtrend is underway, then further rise towards 1.0571 could be seen.

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GBPUSD Analysis.
GBPUSD stays in a rising price channel on 4-hour chart. As long as the channel support holds, another rise to 1.4800-1.4850 area is still possible after consolidation. Key support is at 1.4427, only fall below this level could indicate that the bounce from 1.4230 is complete.

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AUDUSD Analysis.
AUDUSD traded in a range between 0.8275 and 0.8550. Another fall to 0.8150 area is still possible. Resistance is at 0.8550, above this level will indicate that the downtrend from 0.9381 (Apr 12 high) has completed at 0.8066 already.

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EURUSD Analysis.
After touching the falling trend line from 1.2671 to 1.2452, EURUSD drops from 1.2326. Deeper decline to test 1.2111 support is expected later today, below this level could target 1.1950-1.2000 area. Resistance is now at 1.2326, only rise above this level could take price back to 1.2550-1.2600 area.

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USDCHF Analysis.
USDCHF continues its range trading between 1.1449 and 1.1730. As long as 1.1449 support holds, another rise to 1.1900 is still possible. However, a breakdown below 1.1449 support will indicate that the upward movement from 1.0501 (Apr 14 low) has completed at 1.1730 already, then deeper decline could be seen to 1.1300 area.

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USDJPY Analysis.
USDJPY’s upward movement from 88.98 extends to as high as 92.85 level. Further rally is still possible later today and next target would be at 93.00 area. Support is at the rising trend line, as long as the trend line support holds, uptrend will continue.

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