Daily Forex Analysis – January 24, 2011

AUDUSD Analysis.
Being supported by 0.9803, AUDUSD rebounded from 0.9832, however, another fall to re-test 0.9803 support is still possible later today, a breakdown below this level could trigger deeper decline to 0.9600 area. Resistance is at 0.9920, above this level will suggest that a cycle bottom has been formed at 0.9832 level on 4-hour chart, then further rise towards 1.0076 could be seen.


EURUSD Analysis.
After a minor consolidation, EURUSD continued its upward movement from 1.2874, and the rise extended to as high as 1.3624 level. Support is at 1.3395, as long as this level holds, uptrend could be expected to continue in a couple of days and next target would be at 1.3800 area.


GBPUSD Analysis.
GBPUSD remains in uptrend from 1.5344, the fall from 1.6058 is treated as consolidation of uptrend. Range trading between 1.5800 and 1.6058 is expected in a couple of days. As long as 1.5800 support holds, uptrend could be expected to resume and one more rise towards 1.6298 (Nov 4, 2010 high) resistance is still possible after consolidation.


USDCHF Analysis.
USDCHF formed a trading range between 0.9520 and 0.9686. Support is at 0.9520, below this level will indicate that the downtrend from 0.9783 has resumed, then deeper decline could be seen to 0.9400-0.9450 area. Resistance is at 0.9686, above this level will target 0.9900 zone.


USDJPY Analysis.
USDJPY is now in uptrend from 81.85, the fall from 83.11 is treated as correction of uptrend. Further rise towards 83.68 would likely be seen, a break above this level will target 85.00 area. Support is at 81.85, only break below this level could trigger another fall to 81.00 area.


USDCAD Analysis.
USDCAD formed a cycle top at 1.0030 level on 4-hour chart. Deeper decline could be expected in a couple of days, and target would be at 0.9836 previous low, a breakdown below this level could target 0.9600 area.