Daily Forex Analysis – July 8, 2011

AUDUSD Analysis.
AUDUSD is facing 1.0789 resistance, a break above this level will indicate that the uptrend from 1.0390 has resumed, then another rise towards 1.1011 previous high could be seen. However, as long as 1.0789 resistance holds, lengthier consolidation of uptrend is expected to continue, and one more fall to 1.0635 area to reach next cycle bottom on 4-hour chart is possible.


USDJPY Analysis.
USDJPY broke above 81.25 resistance, and continued its upward move from 79.69. Further rise is expected later today, and target would be at 81.80 area. Key support is at the uptrend line on 4-hour chart, only a clear break below the trend line could indicate that the rise from 79.69 is complete.


EURUSD Analysis.
EURUSD’s downward move extended further to as low as 1.4221, the subsequent bounce suggests that a cycle bottom is being formed on 4-hour chart. Further rise would likely be seen in a couple of days, and target would be at 1.4450-1.4500 area.


GBPUSD Analysis.
GBPUSD is forming a sideways consolidation in a range between 1.5912 and 1.6139. The sideways move is expected to continue in a couple of days. Key support is at 1.5912, a breakdown below this level will indicate that the downtrend from 1.6546 has resumed, then another fall towards 1.5500 could be seen.


USDCHF Analysis.
USDCHF is now in downtrend from 0.8525, the bounce from 0.8364 is treated as correction of downtrend. Another fall towards 0.8275 previous low would likely be seen after correction. Key resistance is at 0.8525, only break above this level could trigger another rise to 0.8650 zone.


USDCAD Analysis.
USDCAD broke below 0.9579 support, suggesting that the downtrend from 0.9912 has resumed. Further fall is expected later today, and next target would be at 0.9500 area. Resistance levels are at 0.9600 and 0.9635.