Daily Forex Analysis – September 1, 2008

AUDUSD Analysis.
AUDUSD is forming a sideways consolidation in a range between 0.8493 and 0.8812. Rebound to test 0.8812 previous high resistance is possible in a couple of days. As long as this level holds, we’d expect down trend to resume and deeper decline could be seen to 0.8400 zone. However, above 0.8812 will indicate that the down trend from 0.9849 (July 15 high) has completed and further rebound towards 0.9000 level could be seen to follow.

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EURUSD Analysis.
EURUSD is forming a sideways consolidation in a range between 1.4571 and 1.4908. Rebound to test 1.4908 resistance is possible in a couple of days. As long as this resistance holds, we’d expect down trend to resume and deeper decline could be seen to 1.4500 zone. However a break of 1.4908 level will indicate that the fall from 1.6038 (July 15 high) has completed.

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USDCHF Analysis.
USDCHF traded in range between 1.0842 and 1.1084 for several days. Pullback towards 1.0842 to reach next short term cycle bottom is possible in a couple of days. As long as 1.0842 support holds,  we’d expect up trend to resume, and further rise could be seen to 1.1200 zone. However, a break down below 1.0842 level will indicate that the rise from 1.0010 (July 15 low) has completed, and then deeper decline is expected to 1.0650 level.

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GBPUSD Analysis.
GBPUSD’s fall from 1.8794 extends further to as low 1.8084 level. Initial resistance is now at the down trend line, as long as the pair stays below the trend line resistance, we’d expect down trend to continue, and short term target would be at 1.7900 zone. Only break above the trend line resistance will signal consolidation to down trend.

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USDCAD Analysis.
USDCAD broke above 1.0560 resistance and reached as high as 1.0644 level. Further rise to test 1.0727 resistance is still possible in a couple of days. As long as 1.0727 level holds, we’d expect lengthier consolidation and one more fall below 1.0410 previous low is still possible. However, a break out above 1.0727 previous high will signal resumption of long term up trend.

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USDJPY Analysis.
USDJPY is testing 108.13 previous low support. Breaking below this level will signal deeper decline towards 107.00 zone. Key resistance is at 110.66, rise above this level will indicate that a longer term bullish movement is underway and target would be at 112.00 or even higher.

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