Daily Forex Analysis – Jun 23, 2008

GBPUSD Analysis.
GBPUSD is testing 1.9800 previous high resistance. Further rise above 1.9852 (May 23 high) resistance to reach next short term cycle top is still possible in a couple of days. Key support is located at 1.9697, only break below this level will indicate that a short term cycle top has been formed and pullback to 1.9600 area is expected to follow.

EURUSD Analysis.
EURUSD is in uptrend. As long as the trend line support holds, we’d expect up trend to continue. However, fall below this trend line support will indicate that the pair is forming a short term cycle top and the cycle top will be confirmed by breaking below 1.5462 level.

USDJPY Analysis.
USDJPY formed a short term cycle top at 108.58. Consolidation in a range between 106.56 and 108.58 could be seen in next several days. As long as 106.56 support holds, we’d expect up trend to resume and further rally to 109.00 area is possible after consolidation.

USDCHF Analysis.
USDCHF failed to test 1.0301 support and rebounded from 1.0302 level. The rise from 1.0302 could possibly be resumption of up trend. Further rally to test 1.0539 is now in favor. Initial support is located at 1.0301, a break below this level will pull price back to 1.0250 area.

USDCAD Analysis.
USDCAD might be forming a short term cycle bottom at 1.0100 level on 4-hour chart. Key resistance is located at 1.0210, a break of this level will confirm the cycle bottom. However, below 1.0100 will indicate that the pair is back to down trend, deeper decline to 1.0050 could be seen.

AUDUSD Analysis.
AUDUSD formed a short term cycle bottom at 0.9327 level on 4-hour chart. As long as the trend line support holds, we’d expect uptrend to continue and further rally is expected to 0.9600 area. Consolidation could be seen before breaking above 0.9653 (May 21 high).

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