Daily Forex Analysis – August 21, 2008

AUDUSD Analysis.
AUDUSD is forming a sideways consolidation in a range between 0.8591 and 0.8795. As long as 0.8795 resistance holds, we’d expect down trend to resume, and further fall towards 0.8400 level could be seen after consolidation. However, a break above 0.8795 level will bring price back to retest 0.8952 resistance.

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GBPUSD Analysis.
GBPUSD formed a short term cycle bottom at 1.8512 on 4-hour chart. Sideways consolidation could be seen in a couple of days. As long as 1.8900 resistance holds, we’d expect down trend to resume, and break down below 1.8512 level will signal deeper decline to 1.8200 level.

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USDCAD Analysis.
USDCAD traded in range between 1.0543 and 1.0727 for several days. Breaking about this range is expected in a couple of days. One more rise towards 1.1000 would more likely be seen, and rise above 1.0668 will signal resumption of up trend. Only fall below 1.0543 will indicate the the up trend from 0.9974 (July 15 low) has completed.

20080821_usdcad_1

USDCHF Analysis.
USDCHF’s up trend from 1.0010 (July 15 low) extends to 1.1039 level. Further rise towards 1.1200 is still in favor. Initial support is at 1.0895, below this level will take price back to test 1.0824 support.

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USDJPY Analysis.
No changed in our view, USDJPY is forming a sideways consolidation in a range between 108.36 and 110.66. Pullback to retest 108.36 would more likely be seen in a couple of days. As long as 108.36 level holds, we’d expect up trend to resume, and further rise towards 112.00 is still in favor.

20080821_usdjpy_1

EURUSD Analysis.
EURUSD traded in a narrow range between 1.4629 and 1.4805. Deeper fall is still in favor after consolidation. Initial resistance is at 1.4805, only rise above this level will take price back to test 1.4977 key resistance.

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