Daily Forex Analysis – March 25, 2011

AUDUSD Analysis.
AUDUSD’s upward move from 0.9704 extended to as high as 1.0227. Now the pair is facing 1.0255 (Dec 31, 2010 high) resistance. Minor consolidation would likely be seen before breaking above this level. Support is at 1.0130, below this level will indicate that consolidation of uptrend is underway, then the pair will find support at 1.0050. On the upside, if 1.0255 resistance gives way, next target would be at 1.0400 zone.


GBPUSD Analysis.
GBPUSD’s fall from 1.6400 extended further to as low as 1.6091. Deeper decline is expected in a couple of days, and target would be at 1.6000 area. Initial resistance is at 1.6155, as long as this level holds, downtrend will continue.


EURUSD Analysis.
Being supported by the rising uptrend line on 4-hour chart, EURUSD rebounded from 1.4053. As long as 1.4248 resistance holds, another fall to 1.4000 area to reach next cycle bottom is still possible. However, a break above 1.4248 will suggest that the uptrend from 1.3752 has resumed, then next target would be at 1.4500 zone.


USDCAD Analysis.
USDCAD broke below 0.9746 support. However, lengthier consolidation of downtrend from 0.9973 would more likely be seen later today, and bounce to 0.9800-0.9850 area to reach next cycle top is still possible.


USDJPY Analysis.
USDJPY moved sideways in a range between 80.51 and 81.31 for several days. 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’s bounce from 0.8922 extended to as high as 0.9123. The bounce is still treated as consolidation of downtrend from 0.9774. Further rise to 0.9150 area to reach next cycle top on 4-hour chart is still possible. 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.


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