Daily Forex Analysis – July 7, 2008

GBPUSD Analysis.
GBPUSD formed a short term cycle top at 2.0006 on 4-hour chart. Further pullback to 1.9700 to reach next cycle bottom could be seen in a couple of days. However, the fall from 2.0006 is treated as consolidation to up trend, as long as 1.9700 support holds, we’d expect up trend to resume, and rise towards 2.0200 is expected to follow.

EURUSD Analysis.
EURUSD broke below the up trend line from 1.5302 (June 13 low) to 1.5468 and formed a short term cycle top at 1.5908 on 4-hour chart. The fall is treated as resumption of down trend. Deeper decline to 1.5500 is expected after consolidation. Key resistance is now located at 1.5908, only rise above this level will signal resumption of up trend.

USDCHF Analysis.
USDCHF broke above 1.0231 resistance and formed a short term cycle bottom at 1.0111. Further rise to 1.0400 is expected after consolidation. Key support is now located at 1.0111, only fall below this level will signal resumption of down trend.

USDJPY Analysis.
USDJPY formed a short term cycle bottom at 104.98 on 4-hour chart. Rebound could be seen further to retest 108.58 (June 16 high) in a couple of days. Key support is at 104.98, only break of this level will signal deeper decline to 103.00 level.

USDCAD Analysis.
USDCAD is forming a sideways consolidation in a range between 1.0048 and 1.0238. Pullback to 1.0000 level to complete to consolidation would more likely be seen. Near term resistance is at 1.0238, only rise above this level would take price to test 1.0322 (June 10 high).

AUDUSD Analysis.
AUDUSD traded in range between 0.9582 and 0.9650. As long as 0.9582 support holds, we’d expect up trend to resume and rise to test 0.9667 is possible. A break above 0.9667 resistance will take price to 0.9700 level.

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