Daily Forex Analysis – February 2, 2011

GBPUSD Analysis.
GBPUSD’s upward movement from 1.5751 extended to as high as 1.6162 level. Initial support is at 1.6075, as long as this level holds, uptrend could be expected to continue and next target would be at 1.6250 area. However, a break below 1.6075 will suggest that a cycle top is being formed on 4-hour chart, then pullback towards the uptrend line could be seen.


AUDUSD Analysis.
AUDUSD broke above 1.0076 resistance, suggesting that the long term uptrend from 0.8066 (May 25, 2010 low) has resumed. Further rise towards 1.0255 could be seen in a couple of days. Support levels are at 1.0090 and 1.0040, as long s these levels hold, uptrend from 0.9866 will continue.


USDCHF Analysis.
USDCHF continued its downward move from 0.9783 and the fall extended to as low as 0.9337 level. Deeper decline to test 0.9300 previous low support is still possible later today. Key resistance is at 0.9481, only break above this level could indicate that a cycle bottom has been formed on 4-hour chart, and the fall from 0.9783 has completed.


USDCAD Analysis.
USDCAD broke below 0.9908 key support, suggesting that a cycle top had been formed at 1.0057 level on 4-hour chart, and the consolidation of downtrend from 1.0372 (Oct 19, 2010 high) had completed at 1.0057 already. Deeper decline towards 0.9836 previous low is now in favor.


EURUSD Analysis.
EURUSD broke above 1.3757 resistance, suggesting that the uptrend from 1.2874 has resumed. Support is now at the lower border of the price channel on 4-hour chart, now at 1.3652, as long as the channel support holds, uptrend could be expected to continue and next target would be at 1.4000 area.


USDJPY Analysis.
USDJPY broke below 81.85 support, and the fall from 83.20 extended to as low as 81.31 level. Deeper decline could be seen later today and next target would be at 81.00 area. Resistance is at 81.90, as long as this level holds, downtrend from 83.20 could be expected to continue.