Daily Forex Analysis – August 26, 2010

USDCAD Analysis.
Being contained by 1.0676 (Jul 6 high) resistance, USDCAD formed a minor consolidation in a range between 1.0556 and 1.0666. Key support is at 1.0556, as long as this level holds, uptrend could be expected to continue and further rise to 1.0750 is still possible after consolidation. However, a breakdown below 1.0556 will indicate that a cycle top has been from at 1.0666 level on 4-hour chart, then pullback towards 1.0400 could be seen.

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USDCHF Analysis.
USDCHF broke below 1.0257 previous low, suggesting that a cycle top has been formed at 1.0450 level on 4-hour chart, and the downtrend from 1.1730 (Jun 1 high) has resumed. Deeper decline is still possible after consolidation and next target would be at 1.0200 area. Key resistance is at 1.0464, only break above this level could bring price back to 1.0550-1.0600 area.

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AUDUSD Analysis.
AUDUSD continues its downward move from 0.9079 and the fall extended to as low as 0.8771. Resistance remains at the falling trend line from 0.9079 to 0.8981, as long as the trend line resistance holds, downtrend will continue and next target would be at 0.8700 area. On the upside, a clear break above the trend line resistance could indicate that a cycle bottom has been formed at 0.8771 on 4-hour chart, then the following uptrend could bring price back towards 0.9221 previous high.

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GBPUSD Analysis.
GBPUSD remains in downtrend from 1.5997 and the bounce from 1.5372 is more likely consolidation of downtrend. Another fall is still possible after consolidation and next target would be at 1.5300 area. Resistance is at 1.5550, as long as this level holds, downtrend will continue.

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EURUSD Analysis.
EURUSD trades in a narrow range between 1.2587 and 1.2729. The price action in the trading range is more likely consolidation of downtrend. Another fall is still possible later today and next target would be at 1.2500 area. Resistance is at 1.2729, only break above this level could indicate that the fall from 1.2921 is complete.

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USDJPY Analysis.
USDJPY is forming a cycle bottom at 83.62 level on 4-hour chart. Further rally is expected in a couple of days and target would be at 85.50 area. Support is at 83.62, only break below this level could trigger another fall to 83.00 zone.

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