Forex Market Technical Analysis

August 15, 2007

EURUSD

EURUSD broke below the long term key support at 1.3609, and reached as low as 1.3519. The pair is now in down trend, further fall towards 1.3400 area is expected to follow in the next several days. Key resistance is at 1.3851, only break above this level will signal the resumption of the up trend. For long term analysis, EURUSD is in correction to the long term up trend. Fall towards 1.3262 previous low can be seen in the next several week. Up trend will resume after correction and rise towards 1.4500 to reach the next cycle top on weekly chart is still in favor.

GBPUSD

GBPUSD is in down trend, and further fall towards 1.9621 previous low is still possible in the next several days. Near term resistance is at the down trend line from 2.0652 to 1.0462, and as long as the trend line resistance holds, down trend will continue. For long term analysis, GBPUSD is in correction to the long term up trend. Fall towards 1.9500 area to reach the next cycle bottom on weekly chart is expected to follow. Up trend will resume after correction and rise towards 2.1000 to reach the next cycle top on weekly chart is still possible.

AUDUSD

AUDUSD is in down trend. The fall from 0.8870 extended to as low as 0.8312, and further fall towards 0.8163 previous low can be seen in the next several days. Near term resistance is at the down trend line from 0.8870 to 0.8662, and as long as the trend line resistance holds, down trend will continue. For long term analysis, AUDUSD broke below the long term key support at 0.8355 and topped at 0.8870 on weekly chart. Further fall towards 0.8000 area to reach the next cycle bottom is expected to follow.

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