Daily Forex Analysis – August 19, 2010

AUDUSD Analysis.
AUDUSD formed a cycle bottom at 0.8858 level on 4-hour chart. Now the rise from 0.8858 could possibly be resumption of uptrend from 0.8066 (May 25 low) and the fall from 0.9079 is treated as correction of uptrend. Another rise towards 0.9221 would more likely be seen after correction, however, a break above 0.9079 is needed to confirm such case. On the other side, below 0.8858 will indicate that the pair remains in downtrend from 0.9221, then next target would be at 0.8700-0.8800 area.

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GBPUSD Analysis.
GBPUSD broke below 1.5535 support, suggesting that the downward movement from 1.5997 has resumed. Deeper decline is expected in a couple of days and next target would be at 1.5300-1.5400. Resistance is at 1.5712, only break above this level could indicate that the fall from 1.5997 is complete.

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USDCHF Analysis.
USDCHF failed to break below 1.0331 support. Range trading between 1.0331 and 1.0624 is expected in a couple of days and another rise towards the upper border of the price channel would more likely be seen later today.

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EURUSD Analysis.
EURUSD trades in a range between 1.2734 and 1.2932. Key resistance is at 1.2932, a break above this level will confirm that a cycle bottom has been formed at 1.2734 level on 4-hour chart, then further rally could be seen to 1.3000 area. On the downside, below 1.2734 will indicate that the downward move from 1.3333 has resumed, then next target would be at 1.2600 area.

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USDJPY Analysis.
USDJPY stays in a trading range between 84.72 and 86.87. Another rise towards 86.87 would more likely be seen later today. Key support is at 84.72, only break below this level could trigger another fall to 82.00 zone.

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USDCAD Analysis.
USDCAD remains in downward movement from 1.0493. Deeper decline is still possible later today. However, the next cycle bottom is nearing, key resistance is located at 1.0340, a break above this level will indicate that a cycle bottom has been formed on 4-hour chart and the fall from 1.0439 has completed, then the following uptrend could bring price back to 1.0600 or even higher.

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