Daily Forex Analysis – March 23, 2011

EURUSD Analysis.
Being contained by 1.4281 (Nov 4, 2010 high) resistance, EURUSD pulled back from 1.4248, suggesting that a cycle top is being formed on 4-hour chart. Range trading between 1.4100 and 1.4248 is expected in a couple of days. However, the fall from 1.4248 is treated as consolidation of uptrend from 1.3752, another rise towards 1.4500 is still possible after consolidation, and a break above 1.4248 could signal resumption of uptrend.


USDCAD Analysis.
USDCAD had formed a cycle bottom at 0.9746 level on 4-hour chart. The bounce is treated as consolidation of downtrend from 0.9973. Range trading between 0.9746 and 0.9865 is expected in a couple of days. Support is at 0.9746, a breakdown below this level could indicate that the downtrend from 0.9973 has resumed, then another fall towards 0.9667 previous low could be seen.


GBPUSD Analysis.
GBPUSD broke above 1.6343 resistance, suggesting that the longer term uptrend from 1.5344 (Dec 28, 2010 low) has resumed. Further rise is expected after a minor consolidation, and next target would be at 1.6500 area. Support is at 1.6285, as long as this level holds, uptrend will continue.


USDJPY Analysis.
USDJPY traded in a narrow range between 80.51 and 81.31. The price action in the range is likely consolidation of downtrend from 81.96. Another fall to 79.50-80.00 area would likely be seen later today. Resistance is at 81.31 followed by 81.96, only break above these levels could trigger another rise to 83.00 zone.


USDCHF Analysis.
USDCHF consolidated in a narrow range between 0.8922 and 0.9090 for several days. As long as 0.9150 resistance holds, downtrend could be expected to resume, and another fall towards 0.8700 is still possible.


AUDUSD Analysis.
AUDUSD remains in uptrend from 0.9704, the pullback from 1.0128 is treated as consolidation of uptrend. One more rise towards 1.0150-1.0200 is still possible later today. Support is at 1.0025, only break below this level will indicate that a cycle top is being formed on 4-hour chart.