Daily Forex Analysis - August 26, 2009

AUDUSD Analysis.
AUDUSD remains in short term uptrend from 0.8155. Further rise to test 0.8477 previous high resistance is still possible in a couple of days. Downtrend is expected to resume before breaking above this level, and pullback towards 1.0700 would more likely be seen. However, a break above 0.8477 resistance will suggest that the uptrend from 0.7703 has resumed, then further rally is expected to 0.8700 zone.

GBPUSD Analysis.
GBPUSD breaks below 1.6375 key support, suggesting that a short term cycle top has been formed at 1.6623 level on 4-hour chart. Now the fall from 1.6623 is treated as resumption of downtrend. Deeper decline is expected to test 1.6275 previous low support, a break down below this level will signal further fall towards 1.6000 zone. Near term resistance is at 1.6445, as long as this level holds, downtrend from 1.6623 will continue.

USDCAD Analysis.
USDCAD might be forming a short term cycle bottom at 1.0718 level on 4-hour chart. Further rise is now in favor and target is to test 1.1124 previous high resistance. Near term support is at 1.0718, only fall below this level will suggest that the downtrend from 1.1124 has resumed and deeper decline to re-test 1.0632 could be seen to follow.

USDJPY Analysis.
As expected, 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.

EURUSD Analysis.
EURUSD is forming a short term cycle top at 1.4375 level on 4-hour chart. Range trading between 1.4200 and 1.4375 is expected in a couple of days. Key support is located at 1.4200, below this level will indicate that the short term uptrend from 1.4045 has completed at 1.4375 level already, then deeper decline could be seen to test 1.4045 support.

USDCHF Analysis.
USDCHF remains in downtrend from 1.0883 and the rebound from 1.0553 is treated as consolidation of downtrend. Further rise towards the upper border of the falling price channel is expected in a couple of days. As long as the channel resistance holds, we would expect downtrend to resume and another fall towards 1.0500 is still possible after consolidation.

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