Daily Forex Analysis – October 26, 2009

GBPUSD Analysis.
Being contained by 1.6741 critical resistance, GBPUSD pulled back sharply from 1.6692 last week and reaches 1.6251 so far, suggesting that the uptrend from 1.5708 has completed. Now the fall from 1.6692 is more likely resumption of longer term downtrend from 1.7042 (Aug 5 high), deeper decline is still possible in a couple of days and next target would be at 1.6000 zone.

20091026_gbpusd_1

USDCHF Analysis.
USDCHF is testing the resistance of the falling trend line on 4-hour chart, a clear break above the trend line resistance will suggest that a short term cycle bottom is being formed at 1.0032 level, then sideways movement between 1.0032 and 1.0228 could be expected to follow. Support level is now at 1.0032, below this level will indicate that bearish movement is underway, and next target would be at  0.9950-1.0000 area.

20091026_usdchf_1

EURUSD Analysis.
EURUSD is testing the support of the lower border of the rising price channel on 4-hour chart, a clear break below the channel resistance will suggest that a short term cycle top is being formed at 1.5060 level, then pullback towards 1.4827 would more likely be seen. However, above 1.5060 will indicate that the pair remains in uptrend from 1.4484, and another rise towards 1.5100 is expected.

20091026_eurusd_1

USDJPY Analysis.
USDJPY’ uptrend from 90.07 extends to as high as 92.18 so far. Further rise to test 92.53 is expected later today, a break above this level will confirm that the downward trend from 97.78 (Aug 7 high) has completed at 88.01 level already, then next possible target would be at 93.00 area. Support level is now at 91.48, as long as this level holds, short term uptrend from 90.07 will continue.

20091026_usdjpy_1

USDCAD Analysis.
USDCAD might be forming a short term cycle top at 1.0584 level on 4-hour char, key support is now locate that 1.0378, a break down below this level will confirm the cycle top, then fall towards 1.0206 could be seen to follow. However, above 1.0584 level will indicate that the pair remains in uptrend from 1.0206, then another rise towards the upper border of the price channel is expected.

20091026_usdcad_1

AUDUSD Analysis.
No changed in our view, AUDUSD remains in upward trend from 0.8567 and the price action from 0.9269 is treated as consolidation of uptrend. A break above 0.9326 will signal another rise toward 0.9400 zone. Key support is at 0.9112, only fall below this level will indicate that the rise from 0.8567 has completed.

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