Daily Forex Analysis – August 2, 2011

USDJPY Analysis.
USDJPY broke below 76.40 previous low and reached as low as 76.29. The pair is now forming a cycle bottom on 4-hour chart, consolidation of downtrend from 81.47 is needed in a couple of days, and the trading range would be between 76.29 and 78.02. As long as 78.02 resistance holds, downtrend could be expected to resume, and another fall towards 75.00 is still possible after consolidation. On the upside, a break above 78.02 will suggest that the fall from 81.47 has completed at 76.29 already, then the following upward movement could bring price back to 82.00-83.00 area.


EURUSD Analysis.
EURUSD is now in downtrend from 1.4535, and the fall extended to as low as 1.4184. Further fall would likely be seen in a couple of days, and the next target would be at 1.4050 area. Resistance is at the downtrend line on 4-hour chart, only a clear break above the trend line could indicate that he fall from 1.4535 is complete.


USDCAD Analysis.
USDCAD’s bounce from 0.9406 extended to as high as 0.9604. Further rise would likely be seen in a couple of days, and next target would be at 0.9650 area. Support is at 0.9530 followed by 0.9490, only break below these levels could indicate that the rise from 0.9406 is complete.


USDCHF Analysis.
USDCHF’s downward move from 82.76 extended to as low as 0.7729, the subsequent bounce suggests that a cycle bottom is being formed on 4-hour chart. Range trading between 0.7729 and 0.8050 would likely be seen in a couple of days. Support is at 0.7729, only break  below this level could trigger another fall towards 0.7500.


GBPUSD Analysis.
GBPUSD broke below the uptrend line on 4-hour chart, suggesting that lengthier consolidation of uptrend from 1.5781 is underway. Deeper decline would likely be seen, and the target would be at 1.6150 area.


AUDUSD Analysis.
AUDUSD stays in a trading range between 1.0911 and 1.1080. The price action in the range is treated as consolidation of uptrend from 1.0525. Support levels are at 1.0911 and 1.0865, as long as these levels hold, we’d expect uptrend to resume, and another rise towards 1.1200 is still possible.