Daily Forex Analysis – July 21, 2010

EURUSD Analysis.
EURUSD broke below 1.2871 key support, suggesting that a cycle top has been formed at 1.3028 level on 4-hour chart. Consolidation of uptrend from 1.2150 is expected in a couple of days. Support is at the lower boundary of the rising price channel on 4-hour chart, now at 1.2755, as long as the channel support holds, another rise towards 1.3200 is still possible. On the downside, a clear break below the channel support will indicate that lengthier consolidation of uptrend is underway, then deeper decline could be seen to 1.2550 area.


USDCAD Analysis.
USDCAD broke below 1.0498 key support, suggesting that a cycle top has been formed at 1.0585 level on 4-hour chart, and the rise from 1.0276 has completed. Now the fall from 1.0585 could possibly be resumption of downtrend, another fall towards 1.0000 would more likely be seen. Key resistance is at 1.0585, only rise above this level could trigger another rise towards 1.0852 (May 25 high).


USDJPY Analysis.
USDJPY has formed a cycle bottom at 86.26 level on 4-hour chart. Range trading between 86.26 and 87.70 would more likely be seen. Resistance is at 87.70, above this level will target 88.50 area. Support is at 86.26, a breakdown below this level will indicate that the downtrend from 89.15 has resumed, then another fall towards 84.82 (2009 low) could be seen.


GBPUSD Analysis.
GBPUSD’s fall from 1.5471 extends to as low as 1.5153, the subsequent bounce suggests completion of downtrend from 1.5471. Further rally would more likely be seen later today and target would be at 1.5400 area. Key support is at 1.4948, as long as this level holds, another rise towards 1.5522 (Apr 15 high) is still possible.


USDCHF Analysis.
USDCHF broke above the falling price channel on 4-hour chart. Further rise is still possible later today and target is at 1.0675 previous high. As long as 1.0675 resistance holds, the price action in the trading range between 1.0399 and 1.0675 is treated as consolidation of downtrend from 1.1730, and another fall to 1.0200 is still possible after consolidation.


AUDUSD Analysis.
AUDUSD has formed a cycle bottom at 0.8632 level on 4-hour chart. Further rise towards 0.8870 resistance is still possible later today, a break above this level could trigger another rise to 0.9000 area.


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