Daily Forex Analysis – August 13, 2010

USDCHF Analysis.
After touching the upper border of the price channel on 4-hour chart, USDCHF pulled back from 1.0624, taking price back to test 1.0461 key support, a breakdown below this level could trigger another fall towards 1.0331 previous low. However, the price action in the trading range between 1.0461 and 1.0624 could possibly be consolidation of uptrend from 1.0331, as long as 1.0461 key support holds, one more rise to test 1.0675 key resistance is still possible.


EURUSD Analysis.
EURUSD’s fall from 1.3333 extended to as low as 1.2781. Further decline is still possible later today and next target would be at 1.2600 area. Resistance is now at 1.2930 followed by 1.3000, as long as these levels hold, downtrend will continue.


AUDUSD Analysis.
AUDUSD is testing 0.8905 key support, a breakdown below this level will indicate that the upward movement from 0.8315 (Jul 1 low) has completed at 0.9221 already, then the following downward movement could bring price to 0.8600-0.8700 area. Resistance is at 0.9010, above this level would suggest that a cycle bottom is being formed on 4-hour chart, then another rise towards 0.9221 could be seen.


GBPUSD Analysis.
GBPUSD continues its downward movement and the fall from 1.5997 extended to as low as 1.5561. Deeper decline is still possible in a couple of days and target would be at 1.5400-1.5500 area. However, the fall from 1.5997 is treated as correction of uptrend from 1.4230 (May 20 low), another rise towards 1.8000 long term target is still possible after correction.


USDJPY Analysis.
After touching 84.82 (2009 low), USDJPY rebounded from 84.72, suggesting that a cycle bottom is being formed on 4-hour chart. Key resistance is at 86.22, a break above this level will confirm the cycle bottom and indicate that the fall from 88.11 has completed, then further rally could be seen to 86.50 area.


USDCAD Analysis.
USDCAD remains in uptrend from 1.0107, and the pullback from 1.0493 is treated as consolidation of uptrend. Range trading between 1.0380 and 1.0493 would more likely be seen later today. Support is at 1.0370, only fall below this level could indicate that a cycle top is being formed on 4-hour chart.


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