Daily Forex Analysis – July 5, 2010

USDCAD Analysis.
USDCAD consolidates below 1.0678 resistance. Range trading between 1.0540 and 1.0678 would more likely be seen in a couple of days. Support is at the lower boundary of the rising price channel on 4-hour chart, followed by 1.0540, as long as this level holds, uptrend could be expected to continue and another rise towards 1.0852 (May 25 high) is still possible after consolidation.

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GBPUSD Analysis.
GBPUSD stays in a rising price channel on 4-hour chart and remains in uptrend from 1.4346. However, the pair has reached the upper boundary of the channel, minor consolidation is needed in a couple of days. Support is now at 1.5030, followed by 1.4873, only fall below these levels could indicate that the upward movement is complete.

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USDCHF Analysis.
USDCHF runs in a falling price channel on 4-hour chart and remains in downtrend from 1.1730, the bounce from 1.0578 is treated as consolidation of downtrend. Initial resistance is at 1.0700 followed by the upper border of the channel, now at 1.0740. As long as the channel resistance holds, another fall 1.0450 is still possible.

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EURUSD Analysis.
EURUSD’s rise from 1.2150 extended to as high as 1.2611 level. Further rally is still possible later today and target is to test 1.2671 key resistance, a break above this level will indicate that the longer term downtrend from 1.5144 (2009 high) has completed at 1.1876 already, then following uptrend could bring price to 1.4500 area.

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AUDUSD Analysis.
AUDUSD might be forming a cycle bottom at 0.8315 level on 4-hour chart. Key resistance is at 0.8509, a break above this level will confirm the cycle bottom, then another rise towards 0.9000 is expected. Support is at 0.8315, only fall below this level will suggest that the downtrend from 0.8850 has resumed, then deeper decline could be seen to 0.8200 area.

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USDJPY Analysis.
USDJPY is forming a cycle bottom at 86.96 level on 4-hour chart. Range trading between 86.96 and 88.76 would more likely be seen. Key resistance is at 88.76, a break above this level will indicate that the fall from 92.88 has completed at 86.96 already, then further rally could be seen to 90.00-91.00 area.

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