Daily Forex Analysis – May 10, 2011

GBPUSD Analysis.
GBPUSD remains in downtrend from 1.6745, the bounce from 1.6270 is treated as consolidation of downtrend. Range trading between 1.6270 and 1.6463 would likely be seen in a couple of days. As long as 1.6463 resistance holds, downtrend could be expected to resume, and another fall towards 1.6150-1.6200 is still possible. However, a break above 1.6463 will indicate that the fall from 1.6745 has completed at 1.6270 already, then further rally could be seen to 1.6545 area.

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USDJPY Analysis.
USDJPY’s bounce from 79.58 reached 80.92 only. The subsequent fall could possibly be resumption of downtrend from 85.51. Deeper decline towards 79.58 previous low could be seen later today, a breakdown below this level could trigger another fall towards 78.50 zone.

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EURUSD Analysis.
EURUSD continued its downward movement from 1.4939, and the fall extended to as low as 1.4255. Resistance is now at 1.4440, as long as this level holds, downtrend could be expected to continue, and next target would be at 1.4150 area.

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USDCAD Analysis.
USDCAD traded in a range between 0.9573 and 0.9711. Lengthier consolidation in the range is expected in a couple of days. Resistance is at 0.9721, a break above this level will indicate that that the upward move from 0.9444 has resumed, then further rise could be seen to 0.9850 zone. Support is at 0.9573, below this level will target 0.9500 area.

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USDCHF Analysis.
USDCHF might be forming a cycle top at 0.8795 level on 4-hour chart. Deeper decline towards 0.8553 previous low is expected later today, as long as 0.8553 support holds, one more rise towards 0.8850 is still possible.

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AUDUSD Analysis.
AUDUSD’s bounce from 1.0536 extended to as high as 1.0811. Now the bounce is treated as correction of downtrend from 1.1011. Further rise to 1.0850 to reach next cycle top on 4-hour chart is possible in a couple of days.

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