Daily Forex Analysis – July 21, 2008

GBPUSD Analysis.
GBPUSD formed a short term cycle top at 2.0158 on 4-hour chart. Deeper decline to test 1.9814 support is still possible in a couple of days, and sideways consolidation would more likely be seen before breaking above 2.0158 level. Up trend will resume after consolidation, and one more rise above 2.0391 (Mar 14 high) is still possible.

EURUSD Analysis.
Being supported by the up trend line from 1.5302 (Jun 13 low) to 1.5611, EURUSD rebounds from 1.5783 level. The pair might be forming a short term cycle bottom on 4-hour chart. Key resistance is now located at 1.5893, a break of this level will conform the cycle bottom, and then further rise could be seen to 1.5940 level.

USDCHF Analysis.
USDCHF’s rebound from 1.0010 extends to as high as 1.0257 level. Further rise could be seen to retest 1.0351 previous high resistance. Initial support is at 1.0170 and followed by 1.0134 level.

USDJPY Analysis.
USDJPY rebounded sharply from 103.76 and reached 107.09 high. Further rise to test 107.75 previous high resistance is still possible in a couple of days. Initial support is at 105.97, a break below this level will take price back to 105.00 area.

AUDUSD Analysis.
No changed in our view, AUDUSD formed a short term cycle top at 0.9849 on 4-hour chart. Sideways consolidation would be seen in next few days. Near term support is at 0.9660 and followed by 0.9615. Key resistance is at 0.9849, a break above this level will signal further rally towards 1.0000 area.

USDCAD Analysis.
USDCAD might be forming a short term cycle top at 1.0080 on 4-hour chart. Pullback to test 0.9974 previous low support is expected, and a break of this level will signal deeper decline to 0.9900 level.

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