Daily Forex Analysis – May 27, 2011

USDCAD Analysis.
USDCAD moved sideways in a narrow range between 0.9743 and 0.9816. The price action in the range is treated as consolidation of uptrend from 0.9444. Further rise is still possible and next next target would be at 0.9900. Support remains at the uptrend line from 0.9513 to 0.9639, only a clear break below the trend line could indicate that lengthier consolidation of uptrend is underway, then pullback to 0.9650-0.9700 area could be seen.


GBPUSD Analysis.
GBPUSD broke above 1.6302 key resistance, suggesting that the downward move from 1.6745 had completed at 1.6059 already. Further rise towards 1.6745 previous high could be seen in a couple of days. Support is at 1.6315, as long as this level holds, uptrend will continue.


USDCHF Analysis.
USDCHF breaks below 0.8553 previous low and reaches as low as 0.8542, suggesting that the long term downtrend from 1.1730 (Jun 1, 2010 high) has resumed. Further fall could be seen in next several days, and next target would be at 0.8400 zone.


AUDUSD Analysis.
AUDUSD breaks above the downtrend line from 1.1011 to 1.0888, suggesting that lengthier consolidation of downtrend is underway. Further rally could be seen to 1.0800 zone.


EURUSD Analysis.
EURUSD remains in downtrend from 1.4939, the price action from 1.4048 is treated as consolidation of downtrend. Further rally is still possible later today, and the target would be at the upper border of the price channel on 4-hour chart.


USDJPY Analysis.
USDJPY broke below the trend rising trend line from 79.58 to 80.36, suggesting that the upward move from 79.58 had completed at 82.22 already. Further fall towards 79.58 support would likely be seen.