Daily Forex Analysis – January 18, 2012

AUDUSD Analysis.
AUDUSD broke above 1.0385 resistance and continued its upward movement from 0.9861. Further rise is expected after a minor consolidation, and next target would be at 1.0500 area. Support is now at 1.0300, as long as this level holds, uptrend could be expected to continue, however, a breakdown below this level will indicate that a cycle top has been formed at 1.0448 on 4-hour chart, then deeper decline to test 1.0145 key support could be seen.

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USDCHF Analysis.
USDCHF failed to break above 1.9594 resistance, and stayed in a trading range between 0.9406 and 0.9594. Lengthier consolidation in the range is expected in a couple of days. Support remains at the upward trend line 0.9066 to 0.9304, as long as the trend line support holds, we’d expected uptrend to resume, and another rise towards 1.0000 is still possible.

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EURUSD Analysis.
EURUSD remains in downtrend from 1.4246 (Oct 27, 2011 high), the price action from 1.2666 is treated as consolidation of downtrend. Further rally to 1.3000 area to complete the consolidation would likely be seen. Support is at 1.2624, a breakdown below this level could signal resumption of downtrend.

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USDCAD Analysis.
USDCAD moved sideways in a range between 1.0076 and 1.0318. Now the pair may be forming a cycle bottom at 1.0112 on 4-hour chart, another rise towards 1.0318 would likely be seen in a couple of days.

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GBPUSD Analysis.
GBPUSD broke above the downward trend line on 4-hour chart, suggesting that a cycle bottom has been formed at 1.5236 on 4-hour chart, and consolidation of the downtrend from 1.5669 is underway. Range trading between 1.5236 and 1.5450 could be seen over the next several days. Support is at 1.5236, only break below this level could signal resumption of the downtrend.

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USDJPY Analysis.
USDJPY broke below 76.60 support and reached as low as 76.55, the subsequent bounce suggested that a cycle bottom is being formed on 4-hour chart. Further rally towards 77.32 would likely be seen over the next several days. Support is at 76.55, only break below this level could trigger another fall towards 76.00.

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