Daily Forex Analysis – September 2, 2010

GBPUSD Analysis.
GBPUSD may be forming a cycle bottom at 1.5326 level on 4-hour chart. Key resistance is at 1.5597, a break above this level will confirm the cycle bottom and indicate that the fall from 1.5997 has completed at 1.5326 already, then the following uptrend could bring price back 1.5700-1.5800 area. However, as long as the pair stays below the downtrend line on 4-hour chart, one more fall to 1.5200 is still possible, and a breakdown below 1.5326 could signal resumption of downtrend.


AUDUSD Analysis.
AUDUSD broke above 0.9029 resistance. Further rise towards 0.9221 would more likely be seen later today. Initial support is at 0.9050 followed by 0.9000, as long as these levels hold, uptrend from 0.8771 will continue.


USDCAD Analysis.
After touching 1.0666 resistance, USDCAD pulled back from 1.0672. Deeper decline towards 1.0400 is still possible later today. As long as 1.0400 support holds, the price action from 1.0666 is treated as consolidation of uptrend, and another rise to 1.0750 is still possible after consolidation. However, a breakdown below 1.0400 will indicate that the rise from 1.0107 is completed at 1.0672 already, then the following downward movement could bring price back to 1.0200 zone.


EURUSD Analysis.
EURUSD broke above 1.2778 resistance, suggesting that the fall from 1.3333 is completed at 1.2587 already. Further rally to test 1.2921 key resistance is expected, above this level will target 1.3000-1.3100 area. Support is at 1.2740, only break below this level could bring price back to downward movement, then one more fall towards 1.2500 could be seen.


USDCHF Analysis.
USDCHF continues its downward move from 1.0624, and the fall extended to as low as 1.0064 level. Key resistance remains at the falling trend line from 1.0624 to 1.0450, as long as the trend line resistance holds, downtrend is expected to continue and next target would be at 1.0000 area.


USDJPY Analysis.
USDJPY failed to break below 83.62 previous low and rebounded from 83.67, suggesting lengthier consolidation of downtrend is underway. Range trading between 83.62 and 85.89 would more likely be seen in a couple of days. Key support remains at 83.62, a break below this level will indicate that the downtrend from 89.15 (Jul 12 high) has resumed, then deeper decline could be seen to 82.00 zone.


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