Daily Forex Analysis – January 24, 2012

USDJPY Analysis.
USDJPY is forming a sideways consolidation in a range between 76.55 and 77.32. Lengthier consolidation in the range would likely be seen in a couple of days. Key resistance is at 77.32, a break above this level will confirm that the downtrend 78.21 has completed at 76.55 already, then the following upward move could bring price to 79.00 zone. Support is at 76.55, below this level could signal resumption of the downtrend, then further decline could be seen, and the target would be at 76.00 area.

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USDCHF Analysis.
USDCHF broke below 0.9304 support, suggesting that a uptrend from 0.8569 (Oct 27, 2011 low) has completed at 0.9594 already. Deeper decline could be expected after a minor consolidation, and next target would be at 0.9150 area. Resistance is now at 0.9350, as long as this level holds, downtrend will continue.

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AUDUSD Analysis.
AUDUS’s upward movement from 0.9861 extended to as high as 1.0572. Further rise is still possible in a couple of days, and next target would be at 1.0650 area. Initial support is at 1.0475, followed by the lower border of the upward channel on 4-hour chart, only a clear break below the channel support could indicate that the rise from 0.9861 is complete.

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EURUSD Analysis.
EURUSD continued its upward movement from 1.2624 and reached as high as 1.3052. Further rise is still possible after a minor consolidation, and next target would be at 1.3200 area. Support is at 1.2875, only break below this level could signal completion of the short term uptrend.

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USDCAD Analysis.
USDCAD continued its downward movement from 1.0318 and reached as low as 1.0052. Further fall is expected after a minor consolidation and next target would be at 1.0000. Resistance is now at 1.0160, only break above this level could signal completion of the downtrend.

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GBPUSD Analysis.
GBPUSD remains in uptrend from 1.5236, and the rise extended to as high as 1.5601. Further rise is still possible after a minor consolidation and next target would be at 1.5700 area. Support is at 1.5490, only break below this level will suggest that a cycle top has been formed on 4-hour chart, then pullback to 1.5400 area could be seen.

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