Daily Forex Analysis – January 12, 2011

AUDUSD Analysis.
AUDUSD continues its downward movement from 1.0255 and the fall extended to as low as 0.9803 level. Deeper decline is still possible in a couple of days and next target would be at 0.9700-0.9750 area. Initial resistance is at 0.9890 and key resistance is at 0.9991, only break above these level could indicate that the downtrend from 1.0255 is complete.


EURUSD Analysis.
EURUSD is forming a cycle bottom at 1.2874 level on 4-hour chart. Range trading between 1.2874 and 1.3150 is expected in a couple of days. Support is at 1.2874, only break below this level could trigger another fall to 1.2700 area.


USDCHF Analysis.
USDCHF’s upward move extended further to as high as 0.9783 level. Consolidation is needed, pullback towards 0.9604 key support would likely be seen later today, a break below this level will indicate that the rise from 0.9300 is complete.


USDJPY Analysis.
USDJPY remains in uptrend from 80.93, the price action from 83.68 is treated as consolidation of uptrend. Another fall to 82.50 area to complete the consolidation would more likely be seen before breaking above 83.68 previous high.


GBPUSD Analysis.
GBPUSD is testing 1.5664 resistance, a break above this level could target 1.5750-1.5800 area. However, 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.
After consolidation, USDCAD breaks below 0.9888 support, suggesting that the downtrend from 1.0207 has resumed. Deeper decline is expected in a couple of days and next target would be at 0.9850 area. Key resistance is at 1.0033, only break above this level could bring price back to 1.0100 area.


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