Daily Forex Analysis – August 15, 2011

USDJPY Analysis.
USDJPY moved sideways in a narrow range between 76.29 and 77.19. Key resistance is at 77.19, a break above this level will indicate that a cycle bottom has been formed at 76.30 on 4-hour chart, and the fall from 80.23 has completed, then further rally could be seen to 79.00-79.50 area. On the downside, a breakdown below 76.29 support will indicate that the long term downtrend has resumed, then next target would be at 73.00 area.

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GBPUSD Analysis.
GBPUSD’s bounce from 1.6110 extended to as high as 1.6312, suggesting that a cycle bottom has been formed on 4-hour chart. Further rise to test 1.6476 resistance is expected, a break above this level could signal resumption of uptrend from 1.5781. Support is now at 1.6225, only break below this level could trigger another fall towards 1.6000.

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EURUSD Analysis.
EURUSD stayed in a trading range between 1.4055 and 1.4430 for several days. The price action in the range is likely consolidation of downtrend from 1.4535. As long as 1.4430 key resistance holds, another fall towards 1.3900 is still possible.

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USDCAD Analysis.
USDCAD stays in a trading range between 0.9765 and 1.0009. Another fall to test 0.9765 support is possible later today, a breakdown below this level will signal resumption of downtrend from 1.0009, then deeper decline towards 0.9406 previous low could be seen.

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USDCHF Analysis.
USDCHF’s bounce from 0.7067 extended to as high as 0.7914. Further rise is still possible in a couple of days, and next target would be at 0.8100 area. Support is now at 0.7660, as long as this level holds, uptrend will continue.

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AUDUSD Analysis.
AUDUSD broke above 1.0412 resistance, suggesting that the uptrend from 0.9927 has resumed. Further rally could be expected in a couple of days, and next target would be at 1.0700 area. Support is at 1.0245, only break below this level could indicate that lengthier consolidation of uptrend is underway, then pull back to 1.0100 area could be seen.

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