Daily Forex Analysis – July 17, 2008

EURUSD Analysis.
EURUSD formed a short term cycle top at 1.6038 on 4-hour chart. Consolidation in a range between 1.5775 and 1.6038 could be seen in next few days. Initial support is at the up trend line from 1.5302 (Jun 13 low) to 1.5611, as long as the trend line support holds, we’d expect uptrend to resume, and further rise above 1.6038 is still possible after consolidation.

USDCHF Analysis.
USDCHF is forming a short term cycle bottom at 1.0010 on 4-hour chart. Consolidation in a range between 1.0010 and 1.0250 would more likely be seen in next few days. As long as the pair stays below 1.0250, we’d expect down trend to resume, and further pullback below 1.0010 is still possible after consolidation. Long term key resistance is at 1.0351, rise above this level will indicate that the down trend from 1.0623 (May 8 high) has completed, and long term up trend has resumed.

USDJPY Analysis.
USDJPY rebounded from 103.76 and reached 105.28 high. Consolidation would more likely be seen in the next few days. Initial resistance is at 105.75 and followed by 106.25. Near term support is at 103.76, a break below this level will signal resumption of down trend.

AUDUSD Analysis.
AUDUSD pulled back from 0.9849 and is forming a short term cycle top on 4-hour chart. Sideways consolidation would be seen in next few days. Initial support is at 0.9705 and followed by 0.9660. Near term resistance is at 0.9849, a break above this level will signal further rally towards 1.0000 area.

GBPUSD Analysis.
GBPUSD is forming a short term cycle top at 2.0158 on 4-hour chart. Sideways consolidation would more likely be seen in next few days. Up trend will resume after consolidation, and one more rise above 2.0391 (Mar 14 high) is still possible.

USDCAD Analysis.
USDCAD might be forming a short term cycle bottom at 0.9974 on 4-hour chart. Rebound towards 1.0075 area to reach next cycle top is expected in a couple of days. Down trend will resume after breaking below 0.9974, and then deeper decline could be seen to 0.9935 level.

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