Daily Forex Analysis – August 2, 2010

GBPUSD Analysis.
GBPUSD continues its upward movement from 1.5124 and the rise extends to as high as 1.5726 level. Key support is at 1.5551, as long as this level holds, further rise to 1.5800-1.5900 to reach next cycle top on 4-hour chart is still possible. On the other side, a breakdown below 1.5551 support will indicate that a cycle top has been formed, then pullback to 1.5400-1.5500 area could be seen.


USDJPY Analysis.
USDJPY broke below 86.26 previous low. Deeper decline is still possible after a minor consolidation and next target would be at 84.82 (2009 low). Resistance is at 86.72, a break above this level will indicate that a cycle bottom had been formed at 85.98, then lengthier consolidation of downtrend could be seen.


USDCHF Analysis.
USDCHF broke below 1.0394 previous low and downtrend from 1.1730 resumed. Further decline would more likely be seen after a minor consolidation and next target would be at 1.0200 area. Resistance is at 1.0466, only rise above this level could turn price back to 1.0500 area.


EURUSD Analysis.
EURUSD remains in uptrend from 1.2732. As long as 1.2952 key support holds, uptrend is expected to continue and next target would be at 1.3200 area. However, a breakdown below 1.2952 will indicate that a cycle top has been formed on 4-hour chart, then pullback towards the lower border of the rising price channel could be seen.


USDCAD Analysis.
USDCAD stays in a trading range between 1.0255 and 1.0394. Now the pair is facing 1.0255 support, a breakdown below this level could trigger another fall towards 1.0000 area. Key resistance is at 1.0394, a break above this level will confirm that a cycle bottom has been formed at 1.0255 already, then the following upward movement could bring price to 1.0550 area.


AUDUSD Analysis.
AUDUSD breaks above 0.9068 previous high and the rise from 0.8632 extends to as high as 0.9100 level. Further rise is still possible later today and next target would be at 0.9200 area. Key support is at 0.8905, only fall below this level could indicate that the upward movement from 0.8632 is complete.


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