Daily Forex Analysis - August 19, 2009

GBPUSD Analysis.
GBPUSD rebounds from 1.6275 and the rise extends to as high as 1.6592 level. Further rally to test 1.6663 previous high resistance is still possible later today. As long as this level holds, we’d expect downtrend to resume and deeper decline to 1.6000 zone is possible. However a break above 1.6663 level will indicate that the downtrend from 1.7042 has completed, then the following uptrend could take price back to re-test 1.7042 resistance.

EURUSD Analysis.
After breaking below 1.4086 support, EURUSD moves sideways and trades in a narrow range between 1.4045 and 1.4148. Further rise to 1.4250 zone to reach the next short term cycle top on 4-hour chart could be seen in a couple of days. However, the rise from 1.4045 is treated as consolidation of downtrend, as long as 1.4327 key resistance holds, we’d expect downtrend to resume and deeper decline to 1.3800 is still possible.

USDCHF Analysis.
USDCHF trades in a range between 1.0670 and 1.0883. Moving sideways without trend in this range is expected in a couple of days. As long as 1.0670 support holds, we’d expect uptrend to resume and one more rise to test 1.0883 is still possible.

USDCAD Analysis.
After breaking above 1.1075 resistance, USDCAD pulls back from 1.1124 level. However, the fall from 1.1124 is more likely consolidation of uptrend. Range trading between 1.0950 and 1.1124 is expected in a couple of days. Key support is at the rising trend line from 1.0632 to 1.0795, as long as the trend line support holds, uptrend will continue.

USDJPY Analysis.
USDJPY remains in downtrend from 97.78 and the rebound from 94.20 is treated as consolidation of downtrend. Deeper decline is still possible to 93.50-94.00 area after consolidation. Key resistance is now located at 95.28, only break above this level will indicate that a short term cycle bottom has been formed at 94.20 level on 4-hour chart, then further rally could be seen to 95.70 zone.

AUDUSD Analysis.
After touching 0.8180 support, AUDUSD rebounds from 0.8155 level. However, the rise from 0.8155 is more likely consolidation of downtrend. Deeper decline is still possible to 0.7900 zone after consolidation. Near term resistance is at 0.8330 and key resistance is at 0.8477.