Daily Forex Analysis – November 25, 2009

EURUSD Analysis.
After breaking above the falling trend line on 4-hour chart, EURUSD traded in a narrow range between 1.4888 and 1.4999. A break above 1.4999 will confirm the the rise from 1.4801 is resumption of longer term uptrend from 1.3748 (June 16 low), then another rise towards 1.5200 is expected to follow. Support level is at 1.4888 followed by 1.4801, only fall below these levels could indicate that the pair remains in a larger trading range between 1.4626 and 1.5062 and lengthier consolidation in the range is expected to follow.

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GBPUSD Analysis.
GBPUSD trades in a narrow range between 1.6460 and 1.6647, as long as support of the rising price channel holds, another rise towards 1.7000 is still possible and a break above 1.6647 could signal resumption of uptrend from 1.5708 (Oct 13 low). However, below 1.6460 will take price to 1.6300-1.6350 area.

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USDJPY Analysis.
USDJPY’s downtrend from 92.32 extends further to as low as 88.35. Deeper decline towards 88.01 previous low is still possible later today. Resistance is now at 89.20 and key resistance is located at the upper border of the falling price channel on 4-hour chart, a clear break above the channel resistance could indicate that the fall from 92.32 has completed, then the following uptrend could bring price back to 91.00 or even 92.00.

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USDCAD Analysis.
Being supported by the lower border of the rising price channel on 4-hour chart, USDCAD rebounded from 1.0539. As long as the channel support holds, another rise towards 1.0852 is possible. However, below 1.0539 level will confirm that the drop from 1.0731 is resumption of downtrend from 1.0852, then another fall towards 1.0206 (Oct 15 low) could be seen to follow.

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USDCHF Analysis.
USDCHF is testing the support of the bottom of the rising price channel on 4-hour chart, a clear break below the channel support will signal another fall towards 0.9900 zone. However, as long as the  channel support holds, one more rebound towards the channel’s upper border is still possible and a break above 1.0152 could confirm such case.

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AUDUSD Analysis.
AUDUSD is forming a short term cycle bottom at 0.9060, key resistance is now located at 0.9275, a break above this level will confirm the cycle bottom and signal another rally towards 0.9500 zone. Support is at 0.9130 followed by 0.9060, only fall below these levels will take price back to downward trend from 0.9404, then deeper decline is expected to test 0.8916 uptrend critical support.

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