Daily Forex Analysis – August 22, 2008

AUDUSD Analysis.
AUDUSD breaks above 0.8795 resistance and reaches 0.8812 level. Further rise to test 0.8952 resistance is now in favor. However, the rebound from 0.8591 is treated as consolidation to down trend. As long as 0.8952 resistance holds, we’d expect down trend to resume, and deeper decline towards 0.8400 level is possible after consolidation.

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GBPUSD Analysis.
GBPUSD breaks above 1.8722 resistance and reaches 1.8794 level. Further rise towards 1.8900 is now in favor. However, the rise from 1.8512 is treated as consolidation to down trend. 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 falls below 1.0543 key support, suggesting that the up trend from 0.9974 (July 15 low) has completed and the pair is now in down trend. Further decline is expect to 1.0350 later today. Initial resistance is now located at 1.0543, as long as the pair stays below this level, down trend will continue.

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USDCHF Analysis.
USDCHF drops below 1.0895 level and is testing 1.0824 support. A break below this level will indicated that the up trend from 1.0010 (July 15 low) has completed, and deeper decline could be seen to 1.0650 level.

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USDJPY Analysis.
USDJPY breaks below 108.36 key support, suggesting that the up trend from 103.76 (July 16 low) has completed and down trend has resumed. Further decline to test the support of the up trend line from 95.77 (Mar 17 low) to 103.76 could be expected next week.

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EURUSD Analysis.
EURUSD breaks above 1.4805 resistance and reaches 1.4908 level. Further rise to test 1.4977 resistance is still possible later today. However, the rebound from 1.4629 is treated as consolidation to down trend. As long as the pair holds below 1.4977 level, we’d expect down trend to resume and deeper decline is still possible after consolidation.

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