Daily Forex Analysis – August 29, 2011

GBPUSD Analysis.
GBPUSD rebounded from 1.6208, suggesting that a cycle bottom has been formed on 4-hour chart. Range trading between 1.6208 and 1.6460 is expected in a couple of days, as long as 1.6460 resistance holds, the rise from 1.6208 is treated as consolidation of downtrend from 1.6617, and one more fall towards 1.6000 is still possible after consolidation.


USDCHF Analysis.
USDCHF broke above 0.8014 and continued its upward movement from 0.7067. Further rise could be expected in a couple of days, and next target would be at 0.8300 area. Support is now at the uptrend line on 4-hour chart, only a clear break below the trend line could indicate that the rise from 0.7067 is complete.


AUDUSD Analysis.
AUDUSD is facing 1.0601 resistance, a break above this level could indicate that the uptrend from 0.9927 has resumed, then next target would be at 1.0800 area. Support is at 1.0455, only break below this level could signal lengthier consolidation of uptrend.


EURUSD Analysis.
EURUSD is facing 1.4517 resistance, a break above this level could indicate that the longer term uptrend from 1.3837 (Jul 12 low) has resumed, then further rise towards 1.4939 (May 4 high) could be seen. On the other side, as long as 1.4517 resistance holds, downtrend could be expected to resume, and one more fall to 1.3900 is still possible.


USDJPY Analysis.
USDJPY’s rise from 75.96 extended to as high as 77.69. As long as 75.96 support holds, the fall from 77.69 is treated as correction of uptrend, another rise to 79.00 area is still possible. However, a breakdown below 75.96 could signal resumption of downtrend, then next target would be at 75.00 zone.


USDCAD Analysis.
USDCAD stays in a trading range between 0.9765 and 1.0009. Lengthier consolidation in the range is still possible in a couple of days. Key support is at 0.9765, a breakdown below this level will confirm that the uptrend from 0.9406 had completed at 1.0009 already, then further fall towards 0.9406 previous low could be seen.