Daily Forex Analysis – March 12, 2012

USDCAD Analysis.
USDCAD stays in a trading range between 0.9841 and 1.0050. Lengthier sideways movement in the range would likely be seen over the next several days. As long as 1.0050 key resistance holds, the price action in the range is treated as consolidation of the downtrend from 1.0422 (Dec 14, 2011 high), and one more fall to 0.9700-0.9800 area is still possible after consolidation. On the other side, a break above 1.0050 will confirm that the downtrend had completed at 0.9841 already, then the following upward movement could bring price back to 1.0400 zone.


USDJPY Analysis.
USDJPY’s upward movement from 76.02 extends to as high as 82.64. Further rise is still possible after a minor consolidation, and next target would be at 83.00 area. Support is at 81.50, as long as this level holds, uptrend will continue.


AUDUSD Analysis.
AUDUSD remains in downtrend from 1.0855, the price action from 1.0507 is treated as consolidation of the downtrend. Support is at 1.0507, a breakdown below this level could signal resumption of the downtrend.


USDCHF Analysis.
USDCHF breaks above 0.9200 previous high, suggesting that the uptrend from 0.8931 has resumed. Further rise could be expected in a couple of days, and next target would be at 0.9250 area. Support is at the upward trend line on 4-hour chart, as long as the trend line support holds, uptrend will continue.


EURUSD Analysis.
EURUSD breaks below 1.3096 previous low and reaches as low as 1.3085, suggesting that the downtrend from 1.3486 has resumed. Further decline would likely be seen, and next target would be at 1.3000. Resistance is at the downward trend line on 4-hour chart, as long as the trend line resistance holds, downtrend will continue.


GBPUSD Analysis.
GBPUSD is facing 1.5648 key support, a breakdown below this level will confirm that the uptrend from 1.5236 had completed at 1.5991 already, then the following downward move could bring price to 1.5000 area.