Daily Forex Analysis – January 16, 2012

AUDUSD Analysis.
AUDUSD moved sideways in a range between 1.0145 and 1.0385. Initial support is at the lower line of the price channel on 4-hour chart, and the key support is at 1.0145, as long as 1.0145 support holds, the price action in the trading range is treated as consolidation of uptrend from 0.9861, and another rise towards 1.0600 is still possible, only a breakdown below 1.0145 will indicate the the rise from 0.9861 has completed at 1.0385 already, then the following downward movement could bring price back to 0.9500 area.


USDCHF Analysis.
USDCHF failed to break below the upward trend line from 0.9066 to 0.9304, and rebounded from 0.9406. Now the pair is facing 0.9594 previous high resistance, a break above this level will signal resumption of uptrend from 0.8569 (Oct 27, 2011 low), then further rise towards 1.0000 could be seen. Initial support is at 0.9490, only break below this level could indicate that lengthier consolidation of uptrend is underway, then another fall to re-test the trend line support could be seen.


EURUSD Analysis.
EURUSD has formed a cycle top at 1.2878 on 4-hour chart, and the consolidation started from 1.2666 has completed. Further fall could be seen over the next several days, and next target would be at 1.2500 area. Key resistance is now at 1.2878, only break above this level could indicate that the downtrend from 1.4246 (Oct 27, 2011 high) is complete.


USDCAD Analysis.
USDCAD traded in a range between 1.0076 and 1.0318. Further rise to test 1.0318 resistance would likely be seen, a break above this level will target 1.0400 area. Support is at 1.0210, only break below this level will suggest that lengthier consolidation in the range is underway.


GBPUSD Analysis.
GBPUSD’s downward movement extended to as low as 1.5236. Resistance is at the downward trend line on 4-hour chart, as long as the trend line resistance holds, downtrend could be expected to continue, and next target would be at 1.5150 area.


USDJPY Analysis.
Being supported by 76.60 previous low, USDJPY rebounded from 76.65 last Friday. Further rally to test 77.32 resistance would likely be seen later today, a break above this level will conform that the fall from 78.21 has completed, then the following upward movement could bring price to 78.00 zone.


Comments are closed.