Daily Forex Analysis – October 7, 2009

USDCHF Analysis.
USDCHF breaks below 1.0283 support, suggesting that a short term cycle top has been formed at 1.0452 level on 4-hour chart. Deeper decline is possible to test 1.0186 previous low support in a couple of days, a breakdown below this level will indicate that the downtrend from 1.1021 (June 24 high) has resumed, then further fall could be seen to 1.0000-1.0100 area. Resistance is now at 1.0320, as long as this level holds, we’d expect short term downward trend from 1.0452 to continue.


USDJPY Analysis.
USDJPY continues trading in range between 88.24 and 90.40. Current fall could be seen further to test 88.24 key support, a break down below this level will signal deeper decline towards 87.12 (Jan 21 low). Resistance is now at 89.40, above this level will indicate lengthier sideways consolidation is underway.


EURUSD Analysis.
EURUSD formed a short term cycle bottom at 1.4484 level on 4-hour chart. Further rise is still possible to test 1.4843 key resistance, a break above this level will indicate that the uptrend from 1.3748 (June 16 low) has resumed, then further rise could be seen to 1.5000-1.5500 area. Support level is now located at 1.4665 followed by 1.4630, below 1.4630 could take price back to re-test 1.4484 previous low support.


GBPUSD Analysis.
GBPUSD stays in a trading range between 1.5770 and 1.6125. As long as 1.6125 resistance holds, the price action from 1.5770 is treated as consolidation of downtrend from 1.6741. Moving sideways without trend in the range is still possible in a couple of days. Another fall below 1.5770 would more likely be seen after consolidation, a break below 1.5770 will indicate that the downtrend has resume and deeper decline could be seen to 1.5600 zone.


USDCAD Analysis.
USDCAD breaks below 1.0590 previous low, suggesting that the downtrend from 1.1124 (Aug 17 high) has resumed. Deeper decline is now in favor and next target would be at 1.0500 zone. Resistance is at 1.0665, as long as this level holds, we’d expect downtrend to continue.


AUDUSD Analysis.
AUDUSD breaks above 0.8858 previous high, suggesting that the uptrend from 0.7703 (July 13 low) has resumed. Further rise towards 0.9000 zone could be seen after a minor correction. Initial support is at 0.8830, as long as this level holds, we’d expect uptrend from 0.8967 to continue.


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