Daily Forex Analysis – October 16, 2009

USDCAD Analysis.
USDCAD rebounded from 1.0206, suggesting that a short term cycle bottom is being formed on 4-hour chart. Range trading between 1.0206 and 1.0450 is expected in next several days. However, the rise from 1.0206 is treated as consolidation of downtrend from 1.0991, as long as 1.0450 resistance holds, we’d expect downtrend to resume and deeper decline towards 1.0000 is still possible after consolidation.

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USDJPY Analysis.
USDJPY breaks above 90.45 resistance, suggesting that the downtrend from 97.78 (Aug 7 high) has completed at 88.01 level already. Further rise is now in favor and target would be at 92.00 or even 94.00. Initial support is at 90.15 followed by 89.90, as long as these levels hold, we’d expect the short term uptrend from 88.83 to continue.

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AUDUSD Analysis.
AUDUSD’s uptrend from 0.8567 extends to as high as 0.9269 level. Further rise towards 0.9400 area is expected in a couple of days. Support level is now located at 0.9140, as long as this level holds, uptrend will continue.

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EURUSD Analysis.
EURUSD stays above the rising support line extended from 1.4484 and remains in uptrend. As long as the trend line support holds, we’d expect uptrend to continue and further rise towards 1.5100 is possible after a minor consolidation.

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GBPUSD Analysis.
After breaking above 1.6125 key resistance, GBPUSD moved sharply to as high as 1.6398 level. Now the downtrend from 1.6741 has completed at 1.5708 level already. Further rise is in favor and next target would be at 1.6500 zone. Initial support is at 1.6200 followed by 1.6140.

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USDCHF Analysis.
USDCHF remains in downtrend from 1.0452 and the rise from 1.0117 is more likely consolidation of downtrend. Range trading between 1.0117 and 1.0200 is expected later today. However, a break below 1.0117 will indicate that the downward trend has resumed and next target would be at 1.0000 area.

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