Daily Forex Analysis – February 26, 2010

GBPUSD Analysis.
GBPUSD breaks below 1.5350 support and the fall from 1.5815 extends to as low as 1.5190 level. Deeper decline is still possible after a minor consolidation and next target would be at 1.5000 area. Resistance is now located at the falling trend line from 1.5815 to 1.5575, as long as the trend line resistance holds, downtrend from 1.5815 could be expected to continue.

USDCAD Analysis.
USDCAD’s rise from 1.0369 extends further to as high as 1.0679 level. However, another fall towards 1.0300 is still expected in next several days. Key support is now located at 1.0510, below this level will confirm that a short term cycle top has been formed at 1.0679 and the rise from 1.0369 has completed.

EURUSD Analysis.
EURUSD continues its sideways movement in a range between 1.3443 and 1.3691. The price action in the trading range is more likely consolidation of downtrend from 1.4579 and one more fall to 1.3300 is still possible after consolidation. Resistance is at 1.3691, only rise above this level could take price to re-test 1.3838 key resistance.

USDCHF Analysis.
USDCHF failed to break above 1.0898 and pulled back from 1.0878, taking price back to range trading between 1.0715 and 1.0898. The price action in the trading range is more likely consolidation of uptrend from 1.0132, one more rise to 1.1000 is still possible after consolidation. Support is at 1.0715, only fall below this level could bring price to re-test 1.0608 key support.

USDJPY Analysis.
USDJPY’s fall from 92.14 extends further to as low as 88.00 level. Deeper decline is expected to test 88.57 previous low support later today, a break below this level will target 87.00 or even 84.82 (Nov 27, 2009 low).

AUDUSD Analysis.
AUDUSD formed a short term cycle top at 0.9070 level on 4-hour chart. Range trading between 0.8750 and 0.9070 is expected in next several days. As long as 0.8750 support holds, another rally to 0.9300 is possible after consolidation.