Daily Forex Analysis – August 6, 2010

EURUSD Analysis.
Being supported by the lower border of the rising price channel on 4-hour chart, EURUSD rebounded from 1.3119. Range trading between 1.3119 and 1.3261 would more likely be seen later today. Key support is now at 1.3119, as long as this level holds, the price action in the trading range is treated as consolidation of uptrend from 1.2732, and another rise towards 1.3350 is still possible. However, below 1.3119 could indicate that lengthier consolidation of uptrend is underway, then deeper decline could be seen to 1.3000 area.

20100806_eurusd_1

USDCHF Analysis.
USDCHF’s bounce from 1.0347 extended to 1.0554 only. The subsequent fall implies that lengthier consolidation in a range between 1.0347 and 1.0675 is underway. As long as 1.0675 key resistance holds, one more fall towards 1.0200 is still possible, and a breakdown below 1.0347 will signal resumption of downtrend. However, above 1.0675 will indicate that the fall from 1.1730 (Jun 1 high) had completed at 1.0347 already, then the following upward movement could bring price to 1.1000 area.

20100806_usdchf_1

GBPUSD Analysis.
GBPUSD stays above the rising trend line from 1.5124 to 1.5551 and remains in uptrend from 1.5124. Range trading between 1.5820 and 1.5967 would more likely be seen later today. Key support is now at 1.5820, as long as this level holds, another rise towards 1.6200 is still possible. However, below 1.5820 will indicate that lengthier consolidation of uptrend is underway, then deeper decline could be seen to 1.5600-1.5700 area.

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USDJPY Analysis.
USDJPY’s bounce from 85.32 extended to 86.44 only. Another fall towards 85.32 support would more likely be seen later today, a breakdown below this level could indicate that the downtrend from 88.11 has resumed, then next target is at 84.82 (2009 low).

20100806_usdjpy_1

USDCAD Analysis.
USDCAD stays in a falling trend line on 4-hour chart and remains in downtrend from 1.0585. As long as the trend line resistance holds, another fall to 1.0000 is still possible. However, a clear break above the trend line resistance will suggest that a cycle bottom is being formed at 1.0107 level, then next target would be at 1.0272 resistance.

20100806_usdcad_1

AUDUSD Analysis.
No changed in our view, AUDUSD stays above a uptrend line from 0.8632 to 0.8905, and remains in uptrend. Further rise is still possible later today and next target would be at 0.9300 area. Support is at the trend line, now at 0.9120, only a clear break below the trend line support could indicate that the rise from 0.8632 is complete.

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