Daily Forex Analysis - August 28, 2009

GBPUSD Analysis.
GBPUSD remains in downtrend from 1.6623 and the fall extended to as low as 1.6153 level. The rebound from 1.6153 is treated as consolidation of downtrend. Near term resistance is at the upper border of the falling price channel on 4-hour chart, as long as the channel resistance holds, we’d expect downtrend to resume, and deeper decline to 1.6000 is possible. However a clear break above the channel resistance will suggest that a short term cycle bottom is being formed at 1.6153 level, then lengthier consolidation in a range between 1.6153 and 1.6400 could be seen to follow.

EURUSD Analysis.
EURUSD failed to test 1.4200 key support and rebounded sharply form 1.4207 level, suggesting that a short term cycle bottom has been formed on 4-hour chart. Further rise could be seen to test 1.4447 previous high resistance, a break above this level will signal further rally towards 1.4700 zone. Near term support is at 1.4300, and key support is now located at 1.4207, only fall below this level will take price back to 1.4100 zone.

AUDUSD Analysis.
AUDUSD rebounded from 0.8238, suggesting that a short term cycle bottom is being formed. Further rise to re-test 0.8477 previous high resistance is now in favor. Near term support is at 0.8350, as long as this level holds, we’d expect uptrend from 0.8238 to continue.

USDCAD Analysis.
USDCAD has formed a short term cycle bottom at 1.0718 level on 4-hour chart and is now in short term uptrend, the pullback from 1.1019 is more likely correction of uptrend. As long as 1.0718 support holds, we would expect uptrend to resume and one more rise towards 1.1400 is still possible.

USDJPY Analysis.
USDJPY breaks below 93.42 previous low support and the fall from 95.05 is treated as resumption of downtrend. Deeper decline is now in favor and next target would be at 92.75 zone. Near term resistance is at the falling trend line on 4-hour chart, as long as the trend line resistance holds, downtrend from 95.05 will continue.

USDCHF Analysis.
USDCHF breaks below 1.0553 support, suggesting that a short term cycle top has been formed at 1.0714 level on 4-hour chart, and the fall from 1.0714 is treated as resumption of downtrend from 1.0883. Deeper decline is now in favor and next target would be at 1.0450-1.0500 area. Key resistance is now located at 1.0714, a break above this level will indicate that the downtrend from 1.0883 has completed.