Daily Forex Analysis – July 18, 2008

EURUSD Analysis.
EURUSD is testing the support of the up trend line from 1.5302 (Jun 13 low) to 1.5611, fall below this trend line support will take price to test 1.5611 level. Initial resistance is at 1.5893, above this level will indicate that the pair is forming a short term cycle bottom on 4-hour chart, and then rebound to 1.6000 area is expected to follow.

USDCHF Analysis.
USDCHF broke above 1.0250 resistance and formed a short term cycle bottom at 1.0010 on 4-hour chart. Further rise to test 1.0351 previous high resistance could be seen in next few days, and break above this level to reach next cycle top is still possible.

USDJPY Analysis.
USDJPY broke above 106.80 resistance. Further rise to test 107.75 previous high resistance is still possible in next few days, a break of this level will indicate that the fall from 108.58 (June 16 high) has completed and up trend has resumed.

AUDUSD Analysis.
AUDUSD formed a short term cycle top at 0.9849 on 4-hour chart. Sideways consolidation would be seen in next few days. Near term support is at 0.9660 and followed by 0.9615. Key resistance is at 0.9849, a break above this level will signal further rally towards 1.0000 area.

GBPUSD Analysis.
GBPUSD formed 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 formed a short term cycle bottom at 0.9974 on 4-hour chart. Rebound from 0.9974 is treated as consolidation to down trend. Deeper decline is still possible to 0.9900 area after consolidation and a break below 0.9974 will signal resumption of down trend.

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