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Archive for August, 2009
GBPUSD rebounds from 1.6275 and the rise extends to as high as 1.6592 level. Further rally to test 1.6663 previous high resistance is still possible later today. As long as this level holds, we’d expect downtrend to resume and deeper decline to 1.6000 zone is possible. However a break above 1.6663 level will indicate that the downtrend from 1.7042 has completed, then the following uptrend could take price back to re-test 1.7042 resistance.
EURUSD breaks below 1.4086 support, suggesting that the uptrend from 1.3748 (June 16 low) has completed at 1.4447 level already. Deeper decline is now in favor and target would be at 1.3800 zone. Now the pair is in short term downtrend from 1.4327, as long as 1.4150 resistance holds, we’d expect downtrend to continue. However, above 1.4150 level will take price back to 1.4200-1.4250 area to reach the next cycle top on 4-hour chart.
EURUSD pulls back from 1.4327 level. Range trading between 1.4086 and 1.4327 is expected in a couple of days. Near term support is at the rising trend line from 1.3832 to 1.4007 now at 1.4147, and key support is at 1.4086, below this level will indicate that the downtrend from 1.4447 has resumed and next target would be at 1.3800 zone. However, as long as the pair stays above the rising trend line, uptrend will continue and one more rise above 1.4327 to reach the next short term cycle top on 4-hour chart is possible.
GBPUSD has formed a short term cycle bottom at 1.6391 level on 4-hour chart. Further rise is expected later today and target would be at 1.6750 zone. Near term support is at 1.6391, below this level will suggest that the downtrend from 1.7042 has resumed, then deeper decline could be seen to 1.6000 level.
After breaking below the support of the up trend line from 1.3832 to 1.4007, EURUSD rebounds from 1.4086 and breaks above 1.4218 key resistance, suggesting that a short term cycle bottom has been formed at 1.4086 level on 4-hour chart. Range trading between 1.4086 and 1.4350 is expected in a couple of days. However, the rise from 1.4086 is more likely consolidation of downtrend from 1.4447, deeper decline to 1.3900 zone is still possible after consolidation.
USDCHF breaks below 1.0797 key support, suggesting that a short term cycle top has been formed at 1.0883 level on 4-hour chart. Range trading between 1.0750 and 1.0883 is expected in next several days. However, the price action from 1.0883 is treated as consolidation of uptrend, one more rise towards 1.1000 is still possible after consolidation.
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USDCAD is testing 1.0933 resistance, a break above this level will indicate that the downtrend from 1.1723 has completed at 1.0632 level already. As long as 1.0933 resistance holds, the rise from 1.0632 is treated as consolidation of downtrend and deeper decline to 1.0500 is still possible after consolidation. Key support is now located at 1.0795, below this level will suggest that a short term cycle top has been formed and downtrend has resumed.
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