Daily Forex Analysis - August 29, 2008

EURUSD Analysis.
EURUSD formed a cycle bottom at 1.4571 on 4-hour chart. Sideways consolidation between 1.4571 and 1.4908 could be seen in a couple of days. As long as price stays below 1.4908, we’d expect down trend to resume, and one more fall towards 1.4500 is still possible after consolidation. However, above 1.4908 will indicate that the down trend from 1.6038 (July 15 high) has completed.

USDCHF Analysis.
USDCHF formed a short term cycle top at 1.1084 on 4-hour chart. Sideways consolidation in a range between 1.0842 and 1.1084 could be seen in a couple of days. As long as 1.0842 support holds, we’d expect up trend to resume, and further rise towards 1.1200 is still possible after consolidation. However, a break down below 1.0842 level will indicate that the rise from 1.0010 (July 15 low) has completed, and then deeper decline is expected to 1.0650 level.

GBPUSD Analysis.
GBPUSD remains in down trend, and the fall from 1.8794 extends further to as low as 1.8240 level. As long as 1.8488 resistance holds, we’d expect down trend to continue and deeper decline towards 1.8000 is still possible next week. Initial resistance is at 1.8488, above this level will take price back to test 1.8794 resistance.

AUDUSD Analysis.
AUDUSD formed a short term cycle bottom at 0.8493 on 4-hour chart. Further rise towards 0.8812 to reach next cycle top could be seen in next few days. As long as 0.8812 resistance holds, we’d expect down trend to resume, and one more fall towards 0.8400 is still possible.

USDCAD Analysis.
USDCAD formed a short term cycle bottom at 1.0410 on 4-hour chart. Rise to test 1.0560 resistance is expect, a break of this level will signal further rally towards 1.0668. Initial support is located at 1.0410, only break of this level will signal resumption of down trend, and next target would be at 1.0300 zone.

USDJPY Analysis.
No changed in our view, USDJPY is forming a sideways consolidation in a range between 108.13 and 110.66. Breaching through 108.70 level will signal deeper decline towards 107.00 zone. Key resistance is at 110.66, rise above this level will indicate that a bullish movement is underway and target would be at 112.00 or even higher.