Daily Forex Analysis – January 27, 2011

USDCAD Analysis.
USDCAD continues its sideways movement in a range between 0.9836 and 1.0033. As long as 1.0033 key resistance holds, the price action in the range is treated as consolidation of downtrend, and another fall towards 0.9600 is still possible. However, a break above 1.0033 will indicate that lengthier consolidation of downtrend is underway, then further rally could be seen to 1.0100-1.0200 area.


AUDUSD Analysis.
AUDUSD continued its sideways movement and traded in a range between 0.9803 and 1.0076. Lengthier consolidation in the range is still possible in a couple of days. Key support is at 0.9803, a breakdown below this level could trigger another fall to 0.9600 area. Key resistance is at 1.0076, above this level will indicate that the fall from 1.0255 had completed at 0.9803 already, then the following upward movement could bring price to 1.0200 zone.


EURUSD Analysis.
EURUSD’s upward movement extended further to as high as 1.3721. Support levels are at 1.3640 and 1.3570, as long as these levels hold, uptrend could be expected to continue and next target would be at 1.3800 area. On the downside, a breakdown below 1.3570 will indicate that a cycle top has been formed on 4-hour chart, then consolidation of uptrend could be seen.


GBPUSD Analysis.
GBPUSD formed a cycle bottom at 1.5751 level on 4-hour chart. Now the bounce from 1.5751 could possibly be resumption of uptrend from 1.5344. further rise towards 1.6058 resistance is expected, a break above this level will target 1.6250 area.


USDCHF Analysis.
USDCHF remains in downtrend from 0.9686 and the fall extended to as low as 0.9400 level. Resistance is at 0.9465, as long as this level holds, downtrend could be expected to continue and next target would be at 0.9300 area.


USDJPY Analysis.
USDJPY is in downtrend from 83.11. Another fall to re-test 81.85 support could be seen later today, a break below this level could bring price to 81.00 area. Resistance is at 82.60, only break above this level could indicate that the fall from 83.11 is complete.