Daily Forex Analysis – January 16, 2013

USDJPY Analysis.

USDJPY breaks below the lower line of the price channel on 4-hour chart, suggesting that a cycle top has been formed on 4-hour chart. Deeper decline would likely be seen and next target would be at 87.50 area. However, the fall from 89.67 would possibly be consolidation of the uptrend from 82.11, as long as 86.82 key support holds, the uptrend could be expected to resume, and another rise towards 95.00 is still possible.

EURUSD Analysis.

EURUSD breaks below 1.3300 support, suggesting that a cycle top is being formed on 4-hour chart, and consolidation of the uptrend from 1.2998 is underway. Range trading between 1.3200 and 1.3403 would likely be seen in a couple of days. As long as 1.3200 support holds, the uptrend could be expected to resume and another rise towards 1.4000 is still possible after consolidation.

USDCHF Analysis.

USDCHF break above 0.9302 resistance. Further rise could be expected and next target would be at 0.9400 area. Support is now at 0.9250, only break below this level will indicate that a cycle top has been formed on 4-hour chart, and the rise from 0.9110 has completed, then further decline to test 0.9083 support could be seen.

AUDUSD Analysis.

AUDUSD stays in a trading range between 1.0521 and 1.0597. As long as 1.0500 support holds, the price action in the range is treated as consolidation of the uptrend, and another rise towards 1.0700 is still possible. On the downside, a breakdown below 1.0500 will suggest that the rise from 1.0344 has completed at 1.0597 already, then the following downward movement could bring price back to 1.0370 zone.

USDCAD Analysis.

USDCAD remains in downtrend from 0.9970, the rise from 0.9815 is likely consolidation of the downtrend. Resistance is at 0.9885, as long as this level holds, the downtrend could be expected to resume, and another fall towards 0.9700 is possible. Only break above 0.9885 resistance will indicate that lengthier consolidation of the longer term downtrend from 1.0055 is underway, then further rise to 0.9950 zone could be expected.

GBPUSD Analysis.

GBPUSD remains in uptrend from 1.5993, the fall from 1.6176 is likely correction of the uptrend. Another rise towards 1.6339 previous high is still possible, and a break above 1.6176 could signal resumption of the uptrend. Support is at 1.5993, only break below this level could trigger another fall towards 1.5800.

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