Daily Forex Analysis – August 18, 2009

EURUSD Analysis.
EURUSD breaks below 1.4086 support, suggesting that the uptrend from 1.3748 (June 16 low) has completed at 1.4447 level already. Deeper decline is now in favor and target would be at 1.3800 zone. Now the pair is in short term downtrend from 1.4327, as long as 1.4150 resistance holds, we’d expect downtrend to continue. However, above 1.4150 level will take price back to 1.4200-1.4250 area to reach the next cycle top on 4-hour chart.

20090818_eurusd_1

GBPUSD Analysis.
GBPUSD breaks below 1.6391 and drops sharply to as low as 1.6275 level. Deeper decline is now in favor and target would be at 1.6000 zone. Near term resistance is at 1.6430, as long as this level holds, downtrend from 1.6663 will continue. However, above 1.6430 level will signal further rally to 1.6550 level.

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USDCHF Analysis.
USDCHF’s rise from 1.0670 extends to 1.0834 level only. Range trading between 1.0730 and 1.0834 would more likely be seen in a couple of days. As long as 1.0670 support holds, we’d expect uptrend to resume and one more rise to test 1.0883 is still possible.

20090818_usdchf_1

USDCAD Analysis.
USDCAD breaks above 1.1075 previous high resistance, suggesting that a short term cycle bottom has been formed at 1.0795 level on 4-hour chart. Further rise to 1.1400-1.1450 area is expected in next several days. Near term support is at 1.0950, and key support is now at the rising trend line from 1.0632 to 1.0795, as long as the trend line support holds, uptrend will continue.

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USDJPY Analysis.
USDJPY breaks below 94.36 support, suggesting that the fall from 97.78 is resumption of medium term downtrend from 101.43 (Apr 6 high). Deeper decline is expected to 93.50 in a couple of days. Near term resistance is at 95.15, as long as this level holds, short term downtrend from 97.78 will continue.

20090818_usdjpy_1

AUDUSD Analysis.
AUDUSD breaks below 0.8180 support, suggesting that the uptrend from 0.7703 has completed at 0.8477 level already. Further fall is still possible to 0.7900 zone in next several days. Near term resistance is at 0.8280 followed by 0.8330.

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