Daily Forex Analysis – July 6, 2010

USDCHF Analysis.
USDCHF might be forming a cycle bottom at 1.0578 level on 4-hour chart. Key resistance is at the upper border of the falling price channel, now at 1.0685, a clear break above the channel resistance could confirm the cycle bottom, then further rise could be seen to 1.0750-1.0800 area. As long as 1.0800 level holds, the bounce from 1.0578 is treated as consolidation of downtrend from 1.1730, one more fall to 1.0450 is still possible.

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USDCAD Analysis.
USDCAD remains in uptrend from 1.0138 and the price action from 1.0673 is treated as consolidation of uptrend. Range trading between 1.0540 and 1.0678 is expected to continue and another fall towards the lower border of the price channel would more likely be seen later today. Key support is at 1.0540, as long as this level holds, we’d expect uptrend to resume and another rise towards 1.0852 (May 25 high) could be seen after consolidation.

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GBPUSD Analysis.
Being contained by the upper boundary of the rising price channel on 4-hour chart, GBPUSD pulled back from 1.5228. Initial support is at 1.5000, followed by the lower boundary of the channel, now at 1.4945. Key support is at 1.4873, only fall below these levels could indicate that the upward movement is complete.

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EURUSD Analysis.
EURUSD might be forming a cycle top at 1.2611 level on 4-hour chart. Range trading between 1.2350 and 1.2611 would more likely be seen in a couple of days. Key support is at the uptrend line from 1.1876 to 1.2150, as long as the trend line support holds, uptrend is expected to continue, only a clear below this trend line could indicate that the rise from 1.1876 is complete.

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AUDUSD Analysis.
AUDUSD is testing 0.8315 support, a break below this level will indicate that the downtrend from 0.8858 has resumed, then deeper decline could be seen to 0.8200 area. Resistance is at 0.8509, only rise above this level could trigger another rise towards 0.9000.

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USDJPY Analysis.
No changed in our view, USDJPY is forming a cycle bottom at 86.96 level on 4-hour chart. Range trading between 86.96 and 88.76 is expected. 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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