Daily Forex Analysis – July 1, 2011

GBPUSD Analysis.
After touching the downtrend line from 1.6441 to 1.6261, GBPUSD dropped from 1.6118. Now the fall from 1.6118 would possibly be resumption of downtrend from 1.6546. Deeper decline to test 1.5912 previous low support is expected later today, a breakdown below this level will signal resumption of downtrend, then next target would be at 1.5700. Resistance is at 1.6118, only break above this level could indicate that lengthier consolidation of downtrend is underway.


AUDUSD Analysis.
AUDUSD’s rise from 1.0390 extended to as high as 1.0750. The pair is now facing 1.0773 resistance. Minor consolidation would likely be seen before breaking above this level, and range trading between 1.0600 and 1.0750 is expected in a couple of days. Only break above 1.0773 could indicate that the uptrend from 1.0390 has resumed, then another rise towards 1.1011 previous high could be seen.


USDCHF Analysis.
An unexpected rise had brought price to as high as 0.8462, suggesting that the fall from 0.8550 had completed at 0.8275 already. Further rally is still possible later today, and target would be at 0.8500, or even 0.8700.


USDCAD Analysis.
USDCAD continued its downward move from 0.9912, and the fall extended to as low as 0.9624. Deeper decline is still possible, and next target would be at 0.9600. However, minor consolidation would more likely be seen later today, initial resistance is now at 0.9685, a break above this level will indicate that consolidation of downtrend is underway, then bounce to 0.9700-0.9750 could be seen.


EURUSD Analysis.
EURUSD’s rise from 1.4102 extended to as high as 1.4536. Further rise is still possible in a couple of days, and next target would be at 1.4600-1.4650 area. Support levels are at 1.4435 and 1.4400, as long as these levels hold, uptrend will continue.


USDJPY Analysis.
USDJPY’s fall from 81.26 reached 80.26 only, the subsequent bounce suggests that a cycle bottom is being formed on 4-hour chart. Further rise would likely be seen in next several days, and target would be at 81.60 area.