Daily Analysis – August 6, 2009

EUR/USD – Consolidation for Breakout?

The pair continues to range after strong moves a few days ago.

A break above 1.4460 indicates another swing higher with a target of 1.4550.  Beyond this is 1.4600 – a daily high in back in Dec. 2008.

A move below 1.4340 would indicate a target of 1.4310-1.4300 and then 1.4250.

Containment or failure to break either side indicates a retest of the other side of the range.

USD/JPY – Trendline Troubles

The pair is consolidating in a series of triangle formations on the hourly charts.  A break above 95.50 would signal a move to retest recent swing highs between 95.80-95.90. Targets beyond are 96.20 and ultimately 96.50 if the prior levels are surpassed.

A break below 94.70 gives early indication of weakness but will be confirmed by a pull below 94.55.  The target is ultimately 93.80 but the 94.40 and 94.00 levels need to watched as there is support at these levels which could stifle the full move.

More ranging is also a possibility as the market generates energy in a narrowing field within the chart formation.

USD/CAD – One More Wave

There are certain patterns which point to at least one more wave down.  This wave will not be too severe – likely targeting 1.0600.  Before this can occur resistance must be broken, just below the recent swing low, at 1.0625.

A break below 1.0600 would target 1.0500-1.0480.

A move back above 1.0800 would negate the swing down at least temporarily and indicate a swing higher.  Initial targets would be 1.0860 and 1.0900-1.0920.

Forex Analysis by: ForexPros – Written by Cory Mitchell

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