Forex Market Technical Analysis

August 22, 2007

EURUSD

EURUSD rebounded from the up trend line from 1.1825 (Feb 2006 low) to 1.2483 (Oct 2006 low), sideways consolidation will be formed in a range between 1.3360 and 1.3545. Further fall towards 1.3262 previous low is expected to follow after consolidation, and a break below 1.3360 level will signal the resumption of the down trend. Near term resistance is at 1.3545, followed by 1.3609, and as long as 1.3609 resistance holds, down trend will continue. 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

Being contained by the previous low support at 1.9621, GBPUSD rebounded from 1.9652. Sideways consolidation will be formed in a ranged between 1.9652 and 2.0000. Further fall below 1.9621 previous low is still possible after consolidation, and a break below 1.9652 level will signal the resumption of the down trend. 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

Being contained by the previous low support at 0.7680 (March low), AUDUSD rebounded from 0.7675 level. Consolidation will be seen in the next several days, and further fall towards 0.7500 is still possible. Near term resistance is at the price channel, and as long as the channel resistance holds, down trend will continue. For long term analysis, AUDUSD topped at 0.8870 on weekly chart. Further fall towards 0.7200 area to reach the next cycle bottom is expected to follow.

USDJPY

USDJPY is in down trend, and further fall towards 110.00 is still possible after consolidation. Near term resistance is at the down trend line, as long as the trend line resistance holds, down trend will continue. Near term support is at 111.59, a break below this level will signal the resumption of the down trend. On the other side, USDJPY might be bottoming at 111.59 level on daily chart, key resistance is at the down trend line, a break above the trend line resistance will confirm the cycle bottom. For long term analysis, USDJPY topped at 124.13 on weekly chart, and further fall towards 108.00 area to reach the next cycle bottom is still possible. On the other side, USDJPY might be bottoming at 111.59 on weekly chart and the fall from 124.13 might completed at this level if the down trend line on daily chart is broken above.

USDCHF

No changed in our view, USDCHF is in up trend, the fall from 1.2214 is treated as correction to the up trend, rise towards 1.2400 is still in favor after correction, and a break above 1.2214 level will signal the resumption of the up trend. Near term support is at 1.1990, and as long as this support holds, up trend will continue. For long term analysis, USDCHF is in correction to the long term down trend. Further rise towards 1.2468 previous high can be seen in the next several weeks. Down trend will resume after correction and fall towards 1.1500 area is still possible.

USDCAD

Being contained by the up trend line support, USDCAD rebounded from 1.0530. Further rise towards 1.1000 is still possible in the next several days. Near term support is at he up trend line, and key support is at 1.0339, only break below 1.0339 level will signal the resumption of the down trend. For long term analysis, the pair broke above 1.0757 long term key resistance, and bottomed at 1.0339 on weekly chart. The fall from 1.1874 (Feb 8 high) has completed, and rise towards 1.1500 is expected.

Other Finance Sites

Compare Secured Loans
Quickly & easily compare over 150 secured loans and 400 personal loans at the Moneysupermarket.com