Daily Forex Analysis – August 5, 2011

EURUSD Analysis.
EURUSD continued its downward movement from 1.4535 and the fall extended to as low as 1.4055. Deeper decline is still possible in a couple of days, and next target would be at 1.3950 area. Resistance is at the downtrend line on 4-hour chart, only a clear break above the trend line could indicate that the fall is complete.

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USDJPY Analysis.
USDJPY bounced strongly to as high as 80.23. The pair is now in uptrend from 76.29, and the fall from 80.23 is treated as consolidation of uptrend. Further rise is still possible after consolidation, and next target would be at 82.00 area.

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USDCAD Analysis.
USDCAD rose strongly to as high as 0.9815. Further rise is still possible in a couple of days, and next target would  be at 0.9850-0.9900 area. Support is at 0.9740, as long as this level holds, uptrend will continue.

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USDCHF Analysis.
No changed in our view, USDCHF remains in downtrend from 0.8276, the price action from 0.7609 is treated as consolidation of downtrend. Resistance is at 78.35, as long as this level holds, downtrend could be expected to resume, and another fall towards 0.7500 is still possible.

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GBPUSD Analysis.
GBPUSD is facing 1.6223 support, a breakdown below this level will confirm that the uptrend from 1.5781 had completed at 1.6475 already, then deeper decline could be seen to 1.6000-1.6100 area. Resistance is now at 1.6300, only break above this level will indicate that lengthier sideways movement is underway.

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AUDUSD Analysis.
AUDUSD’s downward movement from 1.1080 extended to as low as 1.0424. Further fall to test 1.0390 support is still possible, a breakdown below this level will indicate that the long term uptrend from 0.8066 (2010 low) had completed at 1.1080 already.

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