Daily Forex Analysis – August 18, 2008

USDCAD Analysis.
USDCAD might be forming a short term cycle bottom at 1.0562 on 4-hour chart. Key resistance is now located at 1.0693, a break above this level will confirm the cycle bottom. As long as 1.0562 level holds, we’d expect sideways consolidation in a couple of days and further rise towards 1.1000 is possible after consolidation.

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USDCHF Analysis.
USDCHF is in consolidation to up trend. Pullback to 1.0900 level could be seen later today. Initial support is now located at 1.0824, as long as this support holds, we’d expect up trend to resume, and further rise towards 1.1200 is in favor after consolidation.

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USDJPY Analysis.
USDJPY is forming a sideways consolidation in a range between 108.36 and 110.66. pullback to retest 108.36 is possible in a couple of days. As long as 108.36 level holds, we’d expect up trend to resume, and further rise towards 112.00 is still in favor.

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AUDUSD Analysis.
AUDUSD is forming a sideways consolidation in a range between 0.8591 and 0.8795. As long as 0.8795 resistance holds, we’d expect down trend to resume, and further fall to 0.8400 level could be seen after consolidation. However, a break below 0.8591 previous low is needed to confirm the resumption of down trend.

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GBPUSD Analysis.
GBPUSD might be forming a short term cycle bottom at 1.8512 on 4-hour chart. Key resistance is located at 1.8787, a break of this level will confirm the cycle bottom, and then further rise could be seen to test 1.8900 resistance. However, the rebound from 1.8512 is treated as correction to down trend. As long as 1.8900 level holds, we’d expect down trend to resume, and deeper decline is still possible after correction.

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EURUSD Analysis.
EURUSD remains in down trend, and deeper decline towards 1.4500 is still possible in a couple of days. Key resistance is now located at 1.4977, as long as the pair stays below this level, down trend will continue.

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