Daily Forex Analysis – July 14, 2008

EURUSD Analysis.
EURUSD broke above 1.5908 resistance. Further rise to test 1.6019 (Apr 22 high) long term key resistance is still possible later today. A break of this level will indicate that the sideways consolidation in range between 1.5284 and 1.6019 has completed, and the pair has been back to long term uptrend. As long as 1.6019 resistance holds, we’d expect down trend to resume, and pullback to retest 1.5611 level is still possible.

USDJPY Analysis.
USDJPY is forming a short term cycle bottom at 105.64 on 4-hour chart. Rebound to 107.50 area is possible in a couple of days and sideways consolidation is expected before breaking above 107.75 previous high resistance.

AUDUSD Analysis.
AUDUSD broke above 0.9667 previous high resistance and recorded a new high at 0.9716 level. Further rally to 0.9800 area is still possible after consolidation. Initial support is at 0.9595, only fall below this level will take price back to retest 0.9475 level.

USDCHF Analysis.
USDCHF broke below 1.0217 and reached 1.0136 low. Deeper decline to test 1.0111 previous low support is still possible later today. As long as 1.0111 support holds, we’d expect up trend to resume, and rebound to test 1.0351 is expected to follow.

GBPUSD Analysis.
No changed in our view, GBPUSD formed a short term cycle bottom at 1.9647 on 4-hour chart. One more rise above 2.0006 previous high resistance is expect in next few days. Key support is located at 1.9647, below this level will signal deeper decline towards 1.9500 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).

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