Daily Forex Analysis – July 21, 2011

USDCAD Analysis.
USDCAD stays below a falling trend line on 4-hour chart, and remains in downtrend from 0.9777. further decline to test 0.9444 support could be seen later today, a breakdown below this level will indicate that the long term downtrend from 1.0852 (2010 high) has resumed. Resistance is at the downtrend line, only a clear break above the trend line could indicate that the fall from 0.9777 is complete.


USDCHF Analysis.
USDCHF’s bounce from 0.8082 extended to as high as 0.8276. Further rally is still possible after minor consolidation, and next target would be at 0.8400-0.8450 area. Support levels are at 0.8160 and 0.8082, only break below these levels could trigger another fall to 0.8000 zone.


USDJPY Analysis.
USDJPY continued its range trading between 78.46 and 79.58. As long as 79.58 resistance holds, the price action in the range is treated as consolidation of downtrend from 81.47, and one more fall to 77.50 is still possible. However, a break above 79.58 will indicate that the downtrend from 81.47 had  completed at 78.46 already, then the following upward move could bring price to 83.00 zone.


EURUSD Analysis.
EURUSD is facing 1.4281 resistance, a break above this level will signal resumption of uptrend from 1.3837, then another rise towards 1.4500 could be seen. Support is at 1.4190, below this level will indicate that lengthier consolidation of uptrend is underway, then pullback to 1.4000 area is possible.


GBPUSD Analysis.
GBPUSD is in uptrend, the fall from 1.6193 is treated as consolidation of uptrend. Range trading between 1.5935 and 1.6193 would likely be seen in a couple of days. As long as 1.5935 support holds, another rise towards 1.6500 is still possible after consolidation, and a break above 1.6193 will signal resumption of uptrend.


AUDUSD Analysis.
AUDUSD is facing 1.0798 resistance, a break above this level will trigger another rise towards 1.1011 previous high. If 1.0798 resistance holds, lengthier consolidation in the range between 1.0525 and 1.0798 could be seen.


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