Daily Forex Analysis – August 3, 2010

EURUSD Analysis.
EURUSD runs in a price channel on 4-hour chart. Support is now at the lower border of the channel, now at 1.3045, as long as the channel support holds, uptrend from 1.2732 is expected to continue and next target would be at 1.3350 area. Only a clear break below the channel support could indicate that a cycle top is being formed, and the uptrend from 1.2732 is complete, then pullback to 1.3000 area could be seen.

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GBPUSD Analysis.
GBPUSD’s bullish movement from 1.5124 extends to as high as 1.5906 level. Further rise is still possible later today and next target would be at 1.6000 area. Support is now at the uptrend line from 1.5124 to 1.5551, now at 1.5648, as long as the trend line support holds, uptrend will continue.

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USDJPY Analysis.
USDJPY is forming a cycle bottom at 85.98 level on 4-hour chart. Range trading between 85.98 and 87.00 would more likely be seen. The price action in the trading range is treated as consolidation of downtrend, another fall towards 84.82 (2009 low) is still possible after consolidation, and a breakdown below 85.98 could signal resumption of downtrend.

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USDCHF Analysis.
USDCHF is in downtrend from 1.0639. Further decline is still possible later today and next target would be at 1.0200 area. Resistance is at 1.0475, as long as this level holds, downtrend will continue.

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USDCAD Analysis.
USDCAD broke below the triangle pattern on daily chart. Deeper decline is now in favor and target would be at 1.0000-1.0100 area. Resistance is at 1.0305, as long as this level holds, downtrend will continue.

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AUDUSD Analysis.
AUDUSD stays above a rising trend line from 0.8632 to 0.8905. As long as the trend line support holds, further rise is still possible and next target would be at 0.9200 area. Only a clear break below the trend line support could indicate that the uptrend from 0.8632 is complete.

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