Daily Forex Analysis – April 20, 2011

USDJPY Analysis.
USDJPY remains in downtrend from 85.51. The bounce from 82.18 is likely consolidation of downtrend. Resistance is at the upper border of the price channel on 4-hour chart, as long as the channel resistance holds, downtrend could be expected to resume, and another fall towards 81.50 is still possible after consolidation. However, a clear break above the channel resistance will indicate that a cycle bottom is being formed at 82.18, then further rally could be seen to 83.45 zone.


USDCHF Analysis.
USDCHF formed a cycle bottom at 0.8895 level on 4-hour chart. Rang trading between 0.8895 and 0.9065 would likely be seen in a couple of days. However, the price action from 0.8895 is treated as consolidation of downtrend from 0.9339, another fall towards 0.8500 is still possible after consolidation, and a breakdown below 0.8895 could signal resumption of downtrend.


AUDUSD Analysis.
AUDUSD moved sideways in a range between 1.0389 and 1.0581. Support is at 1.0440 followed by 1.0389, as long as these levels hold, we’d expect uptrend to resume, and another rise to 1.0700 is still possible. However, below 1.0389 will indicate that the uptrend from 0.9704 had completed at 1.0581 already, then the following downward move could bring price back to 1.0200 zone.


USDCAD Analysis.
USDCAD is facing 0.9526 support, a breakdown below this level will indicate that the downtrend from 0.9973 has resumed, then another fall towards 0.9400 could be seen, however minor consolidation would likely be seen before breaking below 0.9526 support.


GBPUSD Analysis.
GBPUSD’s fall from 1.6427 extended to as low as 1.6166, the subsequent bounce could possibly be resumption of uptrend. Further rise towards 1.6427 previous high is expected later today, a break above this level will target 1.6700 zone.


EURUSD Analysis.
EURUSD formed a cycle bottom at 1.4157 level on 4-hour chart. Further rise towards 1.4519 is expected in a couple of days, a break above this level will indicate that the uptrend from 1.2874 (Jan 10 low) has resumed, then next target would be at 1.4700-1.4800 area.


Comments are closed.