Daily Forex Analysis – October 20, 2008

USDCHF Analysis.
USDCHF formed a sideways consolidation in a range between 1.1128 and 1.1488 for several days. Pullback to retest 1.1128 previous low support could be seen in a couple of days. As long as 1.1128 level holds, we’d expect up trend to resume, and one more rise above 1.1488 level to reach next cycle top on daily chart is still possible.


AUDUSD Analysis.
AUDUSD is forming a sideways consolidation in a range between 0.6330 and 0.7237. One more rise above 0.7237 previous high to reach next short term cycle top on 4-hour chart is expected later today. Initial support is at 0.6730 and followed by 0.6495 level.


GBPUSD Analysis.
GBPUSD formed a short term cycle top at 1.7630 level. The rebound from 1.7136 is treated as consolidation to down trend. Deeper decline could be seen to retest 1.6786 previous low support, and a break of 1.7136 will confirm the resumption of down trend.


USDJPY Analysis.
No changed in our view, USDJPY is forming a sideways correction in a range between 97.91 and 103.06. Further fall to test 95.77 (Mar 17 low) support could be seen after correction, and a break below 97.91 level will confirm such case. On the other side, the next cycle top on daily chart is nearing, one more rise above 103.06 to reach the cycle top is still possible in a couple of days.


EURUSD Analysis.
EURUSD traded in a range between 1.3258 and 1.3785 for several days. Further fall towards 1.3000 zone to reach next short term cycle bottom could be seen in next few days. Initial resistance is at 1.3540 and key resistance is at 1.3785, only break above 1.3785 level could signal lengthier correction to down trend.


USDCAD Analysis.
Being contained by the resistance at 1.2123, USDCAD pulled back from 1.1995 level last week. Trade in a range between 1.1304 and 1.1995 is expected in next several days, and deeper decline could be seen to test 1.1304 level. Initial resistance is at 1.1995 and key resistance is located at 1.2123 level.


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