Daily Forex Analysis – January 19, 2012

AUDUSD Analysis.
AUDUSD stays in a upward price channel on 4-hour chart, and remains in uptrend from 0.9861. Support is at 1.0300, as long as this level holds, the price action from 1.0448 is treated as consolidation of uptrend, and one more rise towards 1.0600 is still possible. However, a breakdown below 1.0300 will indicate that a cycle top has been formed at 1.0448, then deeper decline to test 1.0145 key support could be seen.


USDCHF Analysis.
USDCHF broke below the upward trend line on 4-hour chart, suggesting that lengthier consolidation of uptrend from 0.8569 (Oct 27, 2011 low) is underway. Deeper decline to test 0.9304 key support would likely be seen, a breakdown below this level will suggest that the rise from 0.8569 is complete.


EURUSD Analysis.
EURUSD is facing 1.2878 resistance. Further rise would likely be seen in a couple of days, and the target would be at 1.3000 area. Key support is at 1.2624, only break below this level could trigger another fall to 1.2500 zone.


USDCAD Analysis.
USDCAD’s fall from 1.0318 extended to as low as 1.0107. Further decline to test 1.0076 is possible later today, a breakdown below this level could bring price to 0.9700 area. Resistance is at 1.0175, only break above this level could trigger another rise to test 1.0318 resistance.


GBPUSD Analysis.
GBPUSD’s rise from 1.5236 extended to as high as 1.5441. Further rally is still possible later today, and next target would be at 1.5500 area. Key support is at 1.5236, only break below this level could signal resumption of the downtrend.


USDJPY Analysis.
USDJPY may be forming a cycle bottom at 76.55 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.