Daily Forex Analysis – August 27, 2012

GBPUSD Analysis.
GBPUSD’s fall from 1.5911 extends to as low as 1.5797, suggesting that a cycle top has been formed on 4-hour chart. Deeper decline to test the support of the upward trend line would likely be seen. As long as the trend line support holds, the fall could be treated as consolidation of the uptrend from 1.5490, and another rise towards 1.6000 is still possible. On the other side, a clear break below the trend line will indicate that the rise from 1.5490 has completed at 1.5911 already, then the following downward move could bring price back to 1.5400-1.5500 area.


AUDUSD Analysis.
AUDUSD breaks below 1.0410 support, suggesting that the downtrend from 1.0612 has resumed. Further decline could be expected, and next target would be at 1.0300 area. Resistance is at 1.0465, followed by the downward trend line from 1.0612 to 1.0543, only a clear break above the trend line could signal completion of the downtrend.


USDCAD Analysis.
USDCAD is now in uptrend from 0.9842. Further rise could be expected over the next several days, and the target would be at 1.0000 area. Key support is at 0.9842, only break below this level could trigger another fall towards 0.9600.


EURUSD Analysis.
EURUSD stays in a upward price channel on 4-hour chart, and remains in uptrend from 1.2042. Further rise could be expected after a minor consolidation, and the target would be at the upper line of the channel. Support levels are at 1.2480 and 1.2400.


USDCHF Analysis.
USDCHF stays below a downward trend line on 4-hour chart, and remains in downtrend from 0.9971. Further decline would likely be seen after a minor consolidation, and next target would be at 0.9500 area. Resistance levels are at 0.9620 and 0.9670.


USDJPY Analysis.
USDJPY is in downtrend from 79.65, the rise from 78.30 is likely correction of the downtrend. Resistance is at 79.00, as long as this level holds, another fall to test 77.92 support could be expected, a breakdown below this level will target 77.00 zone.


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