Daily Forex Analysis – August 26, 2008

EURUSD Analysis.
EURUSD is in range trading between 1.4629 and 1.4977. The fall from 1.4908 could possibly be resumption of down trend. Deeper decline is expected to 1.4500 in a couple of days, and a break below 1.4629 will confirm such case. Initial resistance is at 1.4908, only rise above this level will signal lengthier correction to down trend.

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AUDUSD Analysis.
AUDUSD breaks below 0.8591 previous low support, suggesting deeper decline  to test 0.8512 (Jan 22 low) is underway. A break below 0.8512 level will signal further fall towards 0.8400. Key resistance is at 0.8812, only rise above this level will signal reversal to down trend.

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GBPUSD Analysis.
GBPUSD is in down trend. Further fall is expect to 1.8200 in a couple of days. Initial resistance is at 1.8590 followed by 1.8794, a break above 1.8794 level will indicate that the down trend from 2.0158 has completed.

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USDCAD Analysis.
No changed in our view, USDCAD is in down trend. Rebound from 1.0418 is treated as consolidation to down trend. Deeper decline is still in favor after consolidation. Initial resistance is located at 1.0543 followed by 1.0668, only rise above 1.0668 will signal reversal to down trend.

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USDCHF Analysis.
USDCHF traded in range between 1.0824 and 1.1039. Further rise towards 1.1200 is still in favor in next few days. Key support is at 1.0824, below this level will indicate that the up trend from 1.0010 (July 15 low) has completed, and then deeper decline is expected to 1.0650 level.

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USDJPY Analysis.
USDJPY is forming a sideways consolidation in a range between 108.13 and 110.66. Further rise is still possible to 112.00 in a couple of days. Key support is at 108.13, a break below this level will indicate that the up trend from 103.76 (July 16 low) has completed and down trend has resumed.

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