Daily Forex Analysis – October 6, 2008

USDCHF Analysis.
Being contained by the resistance of 1.1416 (Sep 11 high), USDCHF pulls back from 1.1412 level. Sideways consolidation in a range between 1.1144 and 1.1412 could be seen in a couple of days, and one more fall below 1.1217 to reach the next short term cycle bottom on 4-hour chart would more likely be seen before breaking above 1.1416 level. Initial support is at 1.1217 followed by 1.1144, only break down below 1.1144 will indicate the the rise from 1.0693 has completed, and then deeper decline could be seen to 1.0800 zone.

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AUDUSD Analysis.
AUDUSD remains in down trend. Deeper decline is expected to 0.7500 zone in a couple of days. Initial resistance is at the down trend line and followed by 0.7816, as long as the trend line resistance holds, down trend will continue.

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USDJPY Analysis.
USDJPY is forming a sideways consolidation in a range between 103.49 and 108.02. Pullback to test 103.49 previous low support is possible in a couple of days. As long as this level holds, we’d expect up trend to resume, and one more rise towards 108.00 to reach next short term cycle top on 4-hour chart in favor. However, fall below 103.49 level will signal deeper decline towards 102.00 level.

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USDCAD Analysis.
As expected, USDCAD rises above 1.0819 (Sep 11 high) and reaches as high as 1.0869 level. Further rally could be seen to 1.1000 zone in a couple of days. Initial support is at the up trend line on 4-hour chart and followed by 1.0725. As long as the pair stays above the trend line support, we’d expect up trend to continue.

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EURUSD Analysis.
EURUSD’s down trend remains and the fall from 1.4867 extends to as low as 1.3610 level. Initial resistance is at the down trend line on 4-hour chart and followed by 1.3906 level. As long as the pair stays below the trend line resistance, we’d expect down trend to continue, and first target would be at 1.3400 zone. Only rise above 1.3906 will signal consolidation to down trend.

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GBPUSD Analysis.
Being contained by the support of 1.7445 (Sep 11 low), GBPUSD rebounds from 1.7551. The pair is now in consolidation to down trend. Rise towards 1.8000 zone to reach the next short term cycle top on 4-hour chart is possible in a couple of days. However, down trend will resume after consolidation, deeper decline could be seen to 1.7000 zone, and a break below 1.7551 will confirm the resumption of down trend.

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