Daily Forex Analysis – October 12, 2009

EURUSD Analysis.
Being contained by 1.4843 previous high resistance, EURUSD pulled back from 1.4816 last Friday, suggesting that a short term cycle top is being formed on 4-hour chart. Key support is now located at 1.4649, a break below this level will confirm the cycle top and indicate that the uptrend from 1.4484 has completed, then the following downtrend could take price back to 1.4550 area. However, a break above 1.4843 previous high will suggest that the uptrend from 1.3748 (Jun 16 low) has resumed, then further rise is expected to 1.5000 level.

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USDJPY Analysis.
After breaking below 88.24 support, USDJPY rebounded sharply from 88.01, suggesting that a short term cycle bottom has been formed on 4-hour chart. Further rise to test 90.40 key resistance could be seen later today, a breakout of this level will indicate that the downtrend from 97.78 (Aug 7 high) has completed at 88.01 level already, then the following movement will be treated as uptrend from 88.01 and target would be at 94.00 zone. However, a breakdown below 88.01 support will take price to test 87.12 (Jan 21 low) long term critical support.

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GBPUSD Analysis.
GBPUSD failed to test 1.6125 resistance and formed a short term cycle top at 1.6120 level on 4-hour chart. Deeper decline towards 1.5770 previous low could be seen later today, a break below this level will indicate that the downtrend from 1.6741 has resumed, then next target would be at 1.5500-1.5600 area.

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USDCHF Analysis.
USDCHF consolidates in a range between 1.0231 and 1.0358. Another rise to test 1.0358 key resistance could be seen later today, a break above this level will suggesting that the fall from 1.0452 has completed at 1.0231 level already, then the following rebound could be seen to 0.4150 zone.

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USDCAD Analysis.
USDCAD dropped sharply to as low as 1.0405 so far. Further decline is still in favor in a couple of days and next target would be at 1.0250-1.0300 area. Resistance level is now at 1.0500, above at 1.0648, as long as these levels hold, downtrend will continue.

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AUDUSD Analysis.
AUDUSD remains in uptrend from 0.8567 and the pullback from 0.9089 is more likely consolidation of uptrend. Near term support is at 0.8960 followed by 0.8865, as long as 0.8865 key support holds, we’d expect uptrend to continue and a break above 0.9089 will signal resumption of uptrend.

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