Daily Forex Analysis – June 20, 2011

EURUSD Analysis.
Being contained by 1.3969 support, EURUSD rebounded from 1.4073. Resistance is now at the downtrend line on 4-hour chart. As long as the trend line resistance holds, the bounce from 1.4073 is treated as consolidation of downtrend from 1.4696, and one more fall to re-test 1.3969 support is possible. However, a clear break above the trend line resistance will indicate that a cycle bottom had been formed, and the fall from 1.4696 had completed at 1.4073 already, then the following upward move could bring price to 1.4500-1.4600 area.


AUDUSD Analysis.
AUDUSD remains in downtrend from 1.0773, the bounce from 1.0477 is treated as 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 to re-test 1.0440 is possible. On the upside, a clear break above the channel will indicate that the fall from 1.0773 had completed at 1.0477 already, then further rise towards 1.1011 previous high could be seen.


USDCAD Analysis.
USDCAD had formed a cycle top at 0.9898 on 4-hour chart. The fall from 0.9898 would possibly be consolidation of uptrend from 0.9444, range trading between 0.9750 and 0.9898 is expected in a couple of days. Key support is at the uptrend line from 0.9444 to 0.9669, only a clear break below the trend line could indicate that the uptrend from 0.9444 is complete.


USDJPY Analysis.
USDJPY broke below the uptrend line on 4-hour chart, suggesting that a cycle top had been formed at 81.05. Deeper decline to re-test 79.58 support could be seen later today, a breakdown below this level will target 78.00 area.


GBPUSD Analysis.
Being contained by 1.6059 support, GBPUSD rebounded from 1.6078, suggesting that a cycle bottom is being formed on 4-hour chart. Range trading between 1.6078 and 1.6250 would likely be seen in a couple of days.


USDCHF Analysis.
USDCHF is in short term uptrend from 0.8550, the fall from 0.8550 would possibly be consolidation of uptrend. Further rally is still possible later today, and next target would be at 0.8650-0.8700 area. Key support is at 0.8326, only break below this level could signal resumption of downtrend.


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