Daily Forex Analysis – January 10, 2011

EURUSD Analysis.
EURUSD’s downward movement extends to as low as 1.2885 level. Deeper decline is still possible later today and next target would be at 1.2750 area. Initial resistance is at 1.3025, only break above this level could indicate that minor consolidation of downtrend is underway, then bounce to 1.3100-1.3200 area could be seen.


USDCHF Analysis.
USDCHF remains in uptrend from 0.9300, the fall from 0.9707 is likely consolidation of uptrend. Another rise to 0.9800 area is still possible after consolidation. Support is at 0.9600 followed by 0.9550.


AUDUSD Analysis.
AUDUSD remains in downtrend from 1.0255, the bounce from 0.9907 is treated as consolidation of downtrend. Deeper decline is still possible after consolidation and next target would be at 0.9700 area. Resistance is at 1.0000 followed by 1.0040.


USDJPY Analysis.
USDJPY remains in uptrend from 80.93 and the fall from 83.68 is treated as consolidation of uptrend. Range trading between 82.60 and 83.68 would likely be seen. Resistance is at 83.68, a break above this level will signal resumption of uptrend, then another rise to test 84.49 resistance could be seen.


GBPUSD Analysis.
GBPUSD remains in sideways consolidation.  Range trading between 1.5344 and 1.5664 could still be seen in a couple of days. As long as 1.5664 key resistance holds, downtrend is expected to resume and one more fall to test 1.5296 (Sep 7 low) support is still possible, a break below this level will confirm that the long term uptrend from 1.4230 (May 20 low) is complete.


USDCAD Analysis.
USDCAD stays in a trading range between 0.9888 and 1.0033. Support is at 0.9888, below this level will indicate that the downtrend from 1.0207 has resumed, then the next target would be at 0.9800 area. Resistance is at 1.0033, above this level could target 1.0100 area.