Daily Forex Analysis – August 7, 2008

GBPUSD Analysis.
GBPUSD dropped sharply to as low as 1.0466 level. Further fall is still possible to test 1.9337 (Jan 22 low) long term key support. Initial resistance is at 1.9596, only break above this level will signal consolidation to down trend.

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EURUSD Analysis.
EURUSD’s down trend remains and the fall from 1.6038 (July 15 high) extends further to 1.5398 level. Deeper decline towards 1.5302 (June 13 low) is still possible in a couple of days. Initial resistance is at 1.5515 and followed by 1.5631, as long as 1.5631 resistance holds, we’d expect down trend to continue.

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AUDUSD Analysis.
AUDUSD’s down trend remains and the fall from 0.9849 (Jul 15 high) extends further to 0.9064 level. Deeper decline to test 0.8953 (Mar 20 low) support is still possible in next few days. Initial resistance is located at 0.9205, only rise above this level will signal consolidation to down trend.

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USDJPY Analysis.
As expected, USDJPY broke above 108.58 (June 16 high) resistance and the uptrend from 103.76 (July 16 low) extends to 109.88 level. Further rise towards 112.00 is expected in next few days. Initial support is at 108.37, as long as this level holds, up trend will continue.

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USDCHF Analysis.
USDCHF is testing 1.0623 (May 8 high) long term resistance. Consolidation would more likely be seen before breaking above this level, and pullback to test the support of the up trend line from 1.0010 (June 15 low) to 1.0134 is possible in a couple of days. However, as long as the trend line support holds, we’d expect up trend to resume and further rally could be seen after consolidation.

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USDCAD Analysis.
No changed in our view, USDCAD break above the long term resistance at 1.0378 (Jan 22 high). Further rise towards 1.0600 is still possible. Initial support is at 1.0399 and followed by the up trend line, as long as the trend line support holds, we’d expect up trend to continue.

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