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AUDUSD breaks above 0.6529 resistance and reaches 0.6546 only. The pair might be forming a short term cycle top at 0.6546 level on 4-hour chart. Key support is located at 0.6331, a break below this level will confirm the cycle top and signal deeper decline to 0.6100 zone. Near term resistance is now located at 0.6546, only rise above this level will indicate that the fall from 0.6849 has completed and then further rebound is expected to retest 0.6849 previous high resistance.



Daily Forex Analysis

Being contained by the previous high resistance at 94.61, USDJPY pulls back from 94.46, suggesting that a short term cycle top has been formed on 4-hour chart. Sideways consolidation could be seen in a couple of days. However, further rise is still in favor, a break above 94.61 resistance will indicate that the fall form 110.66 (Aug 15, 2008 high) has completed.



Daily Forex Analysis

EURUSD remains in medium term downtrend from 1.4719. The rebound from 1.2512 is treated as consolidation of the downtrend. Key resistance is now located at 1.3093, as long as this level holds, we'd expect downtrend to resume and deeper decline could be seen to test 1.2329 (Oct 28, 2008 low) support. However, above 1.3093 key resistance will indicate that a cycle bottom has been formed at 1.2512 on daily chart and the fall from 1.4719 has completed.

For long term analysis, EURUSD formed a cycle bottom at 1.2329 level on weekly chart. Consolidation in a range between 1.2329 and 1.4719 would more likely be seen in next several months.


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Being contained by the key resistance at 0.6529, AUDUSD pulls back from 0.6521 level. The pair might be forming a short term cycle top at this level, key support is located at 0.6331, a break below this level will confirm the cycle top and then deeper decline could be seen to retest 0.6248 previous low support. However, above 0.6529 key resistance will indicate that the fall from 0.6849 has completed and further rally is expected to 0.6700-50 area.



Daily Forex Forecast