Daily Forex Analysis – August 17, 2010

GBPUSD Analysis.
Being supported by the rising trend line from 1.4346 (Jun 8 low) to 1.5124, GBPUSD rebounded from 1.5535 level. Now the pair is forming a cycle bottom at 1.5535 level on 4-hour chart, key resistance is at 1.5712, a break above this level will confirm the cycle bottom, then another rise towards 1.5997 could be seen. Support is now at 1.5535, only break below this level could indicate that the downtrend 1.5997 has resumed, then deeper decline could be seen to 1.5400 area.

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USDCHF Analysis.
USDCHF broke below 1.0461 support and reached as low as 1.0350, suggesting that a cycle top had been formed at 1.0624 on 4-hour chart. Further decline is still possible later today and target would be at 1.0250-1.0300 area. Resistance is at 1.0425 followed by 1.0460.

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EURUSD Analysis.
EURUSD remains in downtrend from 1.3333. The price action in the trading range between 1.2732 and 1.2932 is treated as consolidation of downtrend. As long as 1.2932 resistance holds, downtrend is expected to continue and another fall to 1.2600 is possible after consolidation. However, a break above 1.2932 could indicate that a cycle bottom has been formed at 1.2732 level on 4-hour chart, then further rally could be seen to 1.3100 or even higher.

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AUDUSD Analysis.
AUDUSD is forming a cycle bottom at 0.8858 level on 4-hour chart, further rally to test 1.9034 key resistance is expected later today, a break of this level will confirm the cycle bottom and indicate that the fall from 0.9221 is complete, then another rise towards 0.9221 previous high could be seen. Support is at 0.8858, only break below this level could trigger another fall to 0.8800 area.

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USDJPY Analysis.
After touching 86.22 resistance, USDJPY pulled back from 86.37. Range trading between 84.72 and 86.87 would more likely be seen in a couple of days and another rise towards 86.87 resistance is still possible. Key support is at 84.72, only break below this level could trigger another fall to 82.00 zone.

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USDCAD Analysis.
USDCAD formed a cycle top at 1.0493 level on 4-hour chart. Range trading between 1.0250 and 1.0493 is expected in a couple of days and another fall towards 1.0250 support would more likely be seen later today.

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