Daily Forex Analysis – October 23, 2008

USDCAD Analysis.
USDCAD extends to as high as 1.2597 level. Further rally towards 1.3000 zone to reach the next short term cycle top on 4-hour is still possible. Initial support is at the up trend line from 1.1304 to 1.1740, as long as the trend line support holds, up trend to continue.

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USDCHF Analysis.
USDCHF’s up trend extends to as high as 1.1710 level. Further rise is still possible to 1.1800 zone. Initial support is at 1.1500, as long as this level holds, we’d expect up trend to continue.

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AUDUSD Analysis.
No changed in our view, AUDUSD is forming a sideways consolidation in a range between 0.6330 and 0.7237. As long as 0.6495 support holds, we’d expect up trend to resume and one more  rise above 0.7237 previous high to reach next short term cycle top on 4-hour chart is still possible after consolidation.

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GBPUSD Analysis.
GBPUSD remains in down trend, and the fall from 1.7630 extends to as low as 1.6136 level. Deeper decline could be seen to 1.5800 zone this week. Initial resistance is now at 1.6500, as long as this level holds, down trend will continue.

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USDJPY Analysis.
USDJPY breaks below 94.91 previous low support and reaches as low as 97.22 level. Deeper decline towards 95.77 (Mar 17 low) support could be seen in next several days. Near term resistance is at 99.50, as long as this level holds, we’d expect down trend to continue.

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EURUSD Analysis.
EURUSD remains in down trend, and the fall  from 1.3785 extends to as low as 1.2727 level. Further fall is expect to 1.2500 zone in a couple of days. Near term resistance is at the upper boundary of the price channel, now at 1.3025, as long as this level holds, down trend will continue.

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