Daily Forex Analysis – March 21, 2012

GBPUSD Analysis.
GBPUSD remains in short term uptrend from 1.5602, the pullback from 1.5913 is likely consolidation of the uptrend. Support level is at 1.5800, as long as this level holds, uptrend could be expected to resume, and another rise to test 1.5991 previous high resistance is possible. On the downside, a breakdown below 1.5800 will suggest that a cycle top has been formed at 1.5913 on 4-hour chart, then further fall towards 1.5602 could be seen.


AUDUSD Analysis.
AUDUSD failed to break above 1.0668 resistance and dropped from 1.0636. The fall would possibly be resumption of the downtrend from 1.0855. Support is at 1.0421, a breakdown below this level could trigger another fall towards 1.0200.


USDJPY Analysis.
USDJPY is in consolidation of the uptrend from 76.02. Lengthier sideways movement would likely be seen in a couple of days. Support is at the lower line of the price channel on 4-hour chart, uptrend could be expected to resume after touching the channel support. Resistance is at 84.17, a break above this level could signal resumption of the uptrend.


USDCAD Analysis.
Being supported by 0.9841 previous low, USDCAD rebounded from 0.9859, suggesting that a cycle bottom has been formed on 4-hour chart, and lengthier sideways movement in a range between 0.9841 and 1.0050 is underway. 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), one more fall to 0.9700-0.9800 area is still possible.


USDCHF Analysis.
USDCHF’s downward movement from 0.9333 extends to as low as 0.9086. Further decline would likely be seen later today, and the target would be at 0.9000-0.9050 area. Resistance is at 0.9160, only break above this level could signal completion of the downward movement.


EURUSD Analysis.
EURUSD is facing 1.3290 resistance, a break above this level could signal resumption of the uptrend from 1.2624 (Jan 13 low), then further rise towards 1.3486 previous high could be seen. On the other side, as long as 1.3290 level holds, the rise from 1.3003 could be treated as correction of the downtrend from 1.3486, and another fall towards 1.2500 is still possible.