Daily Forex Analysis – October 28, 2010

GBPUSD Analysis.
GBPUSD may be forming a cycle top at 1.5895 level on 4-hour chart. Another fall to re-test 1.5649 key support is expected later today, a break below this level will confirm the cycle top, then deeper decline could be seen to 1.5500-1.5550 area. Only break above 1.5649 level could suggest that lengthier correction of downtrend from 1.6105 is underway.

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USDJPY Analysis.
USDJPY broke above 81.91 key resistance, suggesting that a cycle bottom had been formed at 80.41 level on 4-hour chart and the downward movement from 85.92 had completed. Further rally would more likely be seen in a couple of days and next target would be at 82.50 area.

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EURUSD Analysis.
EURUSD is facing 1.3698 support, a break below this level will confirm that the uptrend from 1.2587 (Aug 24 low) has completed at 1.4152 already, then the following downward move could bring price to 1.3400 area. However, the pair may be forming a sideways consolidation in a range between 1.3698 and 1.4152, bounce to 1.3950 area is possible before breaking below 1.3698 key support.

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AUDUSD Analysis.
Being contained by 0.9998 previous high resistance, AUDUSD dropped from 0.9973 and reached as low as 0.9651 level, and the key support of 0.9661 had been broken below. Deeper decline is expected later today and next target would be at 0.9450-0.9500 area.

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USDCHF Analysis.
USDCHF has reached the upper border of the price channel on 4-hour chart, pullback would more likely be seen later today and target would be at the lower border of the channel. Support is at 0.9830, below this level could indicate that a cycle top is being formed and downward move is expected to follow.

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USDCAD Analysis.
USDCAD’s bounce from 1.0153 extended to as high as 1.0339 level. However, another fall to 1.0100 area to reach next cycle bottom is still possible. Key resistance is at 1.0372, only a break above this level could trigger another rise towards 1.0600 zone.

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