Daily Forex Analysis – July 8, 2008

USDCHF Analysis.
USDCHF dropped sharply from 1.0341 and formed a short term cycle top on 4-hour chart. However, the fall is treated as consolidation to uptrend. Further rise to 1.0500 is expected in next several days. Key support is now located at 1.0111, only fall below this level will signal resumption of down trend.

GBPUSD Analysis.
GBPUSD rebounds from 1.9647 and formed a short term cycle bottom on 4-hour chart. Further rally to test 2.0006 previous high resistance is still possible in a couple of days. Initial support is at 1.9647, below this level will indicate that the up trend from 1.9408 (June 13 low) has completed and down trend has resumed.

EURUSD Analysis.
EURUSD formed a short term cycle bottom at 1.5611. However, the rise is treated as consolidation to down trend. As long as 1.5908 key resistance holds, we’d expect down trend to resume and a break below 1.5611 will take price to retest 1.5302 (June 13 low).

USDJPY Analysis.
USDJPY stays in up trend. The fall from 107.75 is treated as consolidation to up trend. A break above 107.75 will bring price to test 108.58 (June 16 high). Key support is located at 105.78, only fall below this level will signal one more fall towards 103.00 level.

USDCAD Analysis.
No changed in our view, 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 broke below 0.9582 support and reached 0.9515 level. Initial support is now at 0.9511 and key support located at 0.9493. A break below the key support will signal resumption of down trend, and target would be at 0.9200 area.

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