Daily Forex Analysis – August 1, 2008

USDJPY Analysis.
USDJPY’s up trend from 103.76 extends further to 108.37 level. As long as 106.57 support holds, we’d expect up trend to continue and rise above 108.58 (June 16 high) is still in favor. Only break down below 106.57 level will indicated that the uptrend from 103.76 has completed.

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USDCHF Analysis.
USDCHF is in consolidation to up trend. Near term support is at the up trend line from 1.0010 to 1.0134, as long as the trend line support holds, we’d expect up trend to resume, and a break of 1.0520 level will signal further rise to test 1.0623 (May 8 high) resistance.

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EURUSD Analysis.
EURUSD’s down trend remains and rebound from 1.5521 is treated as consolidation to down trend. Deeper decline is still possible after consolidation, and a break of 1.5521 level will signal resumption of down trend. Initial resistance is at 1.5700, only rise above this level will take price back towards 1.5768 previous high.

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GBPUSD Analysis.
GBPUSD is in down trend. Rebounded from 1.9744 is treated as correction to down trend. Further fall is expected after correction, and a break of 1.9744 will signal resumption of down trend. Initial resistance is at 1.9929 and followed by 1.9978.

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USDCAD Analysis.
No changed in our view, USDCAD is in up trend. The fall from 1.0272 is treated as consolidation to uptrend. Further rise towards 1.0322 (June 10 high) is still possible. Initial support is at 1.0173 and near term resistance is at 1.0272, a break of 1.0272 level will signal resumption of up trend.

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AUDUSD Analysis.
AUDUSD dropped sharply from 0.9792 to 0.9366 low. Deeper decline towards 0.9327 (June 12 low) is still possible. Initial resistance is at 0.9475, as long as this resistance holds, downtrend will continue.

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