Daily Forex Analysis – April 18, 2011

USDCHF Analysis.
USDCHF remains in downtrend from 0.9339, and the fall extended to as low as 0.8895, the price action from 0.8895 is treated as minor consolidation of downtrend. Another fall would likely be seen after consolidation, and next target would be at 0.8800 zone. Resistance is at 0.8975, only break above this level will indicate that lengthier consolidation of downtrend is underway, then range trading between 0.8895 and 0.9050 could be seen to follow.


USDJPY Analysis.
USDJPY continues its downward move from 85.51, and the fall extends to as low as 82.86 level. Resistance is at the falling trend line on 4-hour chart, as long as the trend line resistance holds, downtrend could be expected to continue and next target would be at 82.50 zone. Only a clear break above the trend line will indicate that a cycle bottom is being formed on 4-hour chart, then correction of downtrend could be seen.


AUDUSD Analysis.
AUDUSD is facing 1.0581 resistance, a break above this level will indicate that the uptrend from 0.9704 has resumed, then another rise towards 1.1000 could be seen. Support is at 1.0500, a breakdown below this level will suggest that lengthier consolidation of uptrend is underway, then deeper decline to 1.0400 zone is expected.


USDCAD Analysis.
USDCAD had formed a cycle top at 0.9669 on 4-hour chart. Now the fall from 0.9669 could possibly be resumption of downtrend from 0.9973. Deeper decline to test 0.9526 previous low support would likely be seen later today, a break below this level could trigger another fall towards 0.9400 zone.


GBPUSD Analysis.
GBPUSD traded in a range between 1.6227 and 1.6427. As long as 1.6227 support holds, the price action in the range is treated as consolidation of uptrend from 1.5936, and another rise towards 1.6600 is expected after consolidation. However, a breakdown below 1.6227 will indicate that lengthier consolidation of uptrend is underway, then pullback to 1.6100 area could be seen.


EURUSD Analysis.
EURUSD breaks below 1.4365 support, suggesting that lengthier consolidation of uptrend from 1.3752 is underway. Deeper decline could be seen later today, and target would be at 1.4260 area. However, another rise is still possible after consolidation, and a break above 1.4519 resistance will signal resumption of uptrend.