Daily Forex Analysis – March 24, 2011

GBPUSD Analysis.
After breaking above 1.6343 resistance, GBPUSD pulled back from 1.6400. However, the fall from 1.6400 is treated as consolidation of uptrend, as long as 1.6185 support holds, another rise towards 1.6500 is still possible after consolidation. However, below 1.6185 will indicate that lengthier consolidation of uptrend is underway, then deeper decline to 1.6000 area could be seen.


EURUSD Analysis.
As expected, EURUSD formed a cycle top at 1.4248 level on 4-hour chart, and the fall extended to as low as 1.4077. Range trading between 1.4000 and 1.4248 would likely be seen in a couple of days. Key resistance is at 1.4248, only break above this level could trigger another rise towards 1.4500 zone.


USDCAD Analysis.
USDCAD formed a cycle bottom at 0.9746 level on 4-hour chart. Range trading between 0.9746 and 0.9865 is expected in a couple of days. However, the bounce from 0.9746 is treated as consolidation of downtrend from 0.9973, another fall towards 0.9667 previous low is still possible after consolidation, and a breakdown below 0.9746 could signal resumption of downtrend.


USDJPY Analysis.
USDJPY continued to trade 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.
No changed in our view, USDCHF is in downtrend from 0.9774, the bounce from 0.8922 is treated as consolidation of downtrend. Further rally to 0.9150 area to reach next cycle top on 4-hour chart is possible later today. Key support is at 0.8975, a breakdown below this level could signal resumption of downtrend, then next target would be at 0.8700 zone.


AUDUSD Analysis.
AUDUSD’s upward move from 0.9704 extended to as high as 1.0155. support is now at 1.0063, as long as this level holds, uptrend could be expected to continue and next target would be at 1.0200 area, only break below 1.0063 could indicate that the rise from 0.9704 is complete.