Daily Forex Analysis – August 31, 2009

GBPUSD Analysis.
GBPUSD broke above the upper border of the price channel, suggesting that a short term cycle bottom is being formed at 1.6153 level on 4-hour chart. Range trading between 1.6153 and 1.6500 is expected in a couple of days. However the price action from 1.6153 is treated as consolidation of downtrend from 1.7042, further fall towards 1.6000 is still possible after consolidation, and a break below 1.6153 will signal resumption of downtrend.

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EURUSD Analysis.
EURUSD broke above 1.4375 resistance last week. Further rise to re-test 1.4447 is now in favor, and a break above this level will suggest that the uptrend from 1.3748 (June 16 low) has resumed. Key support is at 1.4200, only fall below this level will take price back to 1.4100 zone.

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AUDUSD Analysis.
AUDUSD is testing 0.8477 previous high resistance. As long as this level holds, we’d expect downtrend to resume and pullback to 0.8250-0.8300 would more likely be seen before breaking above 0.8477 level. However a break of 0.8477 will suggest that the uptrend from 0.7703 has resumed, then the next target would be at 0.8600-0.8700 area.

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USDCAD Analysis.
No changed in our view, USDCAD is in short term uptrend from 1.0718 and the pullback from 1.1019 is treated as correction of uptrend. As long as 1.0718 support holds, we would expect uptrend to resume and one more rise towards 1.1400 is still possible.

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USDJPY Analysis.
USDJPY is in short term downtrend from 95.05. Deeper decline to 92.50 is expected in a couple of days. Near term resistance remains at the falling trend line from 95.05 to 94.55 now at 94.05, as long as the trend line resistance holds, downtrend will continue.

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USDCHF Analysis.
USDCHF remains in short term downtrend from 1.0883. Near term resistance is now located at the falling trend line on 4-hour chart now at 1.0680, as long as the trend line resistance holds, we’d expect the downtrend to continue. Key resistance is at 1.0714, above this level will indicate that the downtrend from 1.0883 has completed, then rebound towards 1.1000 could be seen to follow.

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