Daily Forex Analysis – August 27, 2009

EURUSD Analysis.
EURUSD has formed a short term cycle top at 1.4375 on 4-hour chart. Deeper decline to test 1.4200 support is possible later today, a break down below this level will suggest that the uptrend from 1.4045 has completed at 1.4375 already, then further fall could be seen to follow and target is to test 1.4045 previous low support. Near term resistance is at 1.4290, and key resistance is at 1.4375, only rise above this level will indicate that the uptrend from 1.4145 has resumed, then further rise towards 1.4500 is expected.

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AUDUSD Analysis.
AUDUSD drops sharply to as low as 0.8252 level, suggesting that a short term cycle top has been formed at 0.8428 on 4-hour chart. Deeper decline is now in favor and next target is to test 0.8155 support. Near term resistance is at 0.8335, as long as this level holds, downtrend from 0.8428 will continue.

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GBPUSD Analysis.
GBPUSD broke below 1.6275 support and dropped sharply to as low as 1.6159 level. Deeper decline towards 1.6000 is still possible in a couple of days. Near term resistance is at 1.6310 followed by 1.6445, as long as these levels hold, downtrend from 1.6623 will continue.

20090827_gbpusd_1

USDCAD Analysis.
USDCAD failed to break below 1.0632 and rebounded sharply from 1.0718. The pair has formed a short term cycle bottom at 1.0718 level on 4-hour chart. Further rise is still possible to test 1.1124 previous high resistance, a break above this level will signal further rally towards 1.1400 zone. Near term support is at 1.0925 followed by 1.0890, as long as these levels hold, uptrend from 1.0718 will continue.

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USDJPY Analysis.
No changed in our view, USDJPY stays in a trading range between 93.42 and 95.05. Moving sideways in this range is expected in a couple of days. As long as 95.28 key resistance holds, we’d expect downtrend to resume and deeper decline to 90.00 zone is still possible after consolidation.

20090827_usdjpy_1

USDCHF Analysis.
USDCHF breaks above the resistance of the upper border of the falling price channel. Further rise to 1.0750 zone is expected. However, the rise from 1.0553 is more likely correction of downtrend from 1.0883, and another fall is still possible after correction.

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