Daily Forex Analysis – November 3, 2009

USDCHF Analysis.
USDCHF formed a trading range between 1.0148 and 1.0285. Pullback to 1.0100 to reach next short term cycle bottom on 4-hour chart could be seen in a couple of days. However, the price action from 1.0285 is more likely consolidation of uptrend from 1.0032, as long as 1.0032 support holds, we’d expect uptrend to resume and another rise towards 1.0400 is possible.

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USDCAD Analysis.
USDCAD stays in a rising price channel and remains in uptrend from 1.0206, another rise towards 1.0900 is still possible. Key support level is located at 1.0627, below this level could indicate that the rise from 1.0206 has completed, then the following downward trend could bring price back below 1.0206 previous low.

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EURUSD Analysis.
EURUSD traded in a narrow range in last three trading days. Now the price action from 1.4683 is more likely consolidation of downtrend from 1.5062, another rise to 1.4920 to complete the consolidation is expected. Support level is at 1.4683, below this level will indicate that the downward trend has resumed, then another fall could take price to 1.4550-1.4600 area.

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USDJPY Analysis.
USDJPY remains in short term downtrend form 92.32. Deeper decline towards 88.83 to reach next cycle bottom on 4-hour chart is possible in a couple of days. However, rebound would more likely be seen before breaking below 88.03 level, and another rise to 94.00 is expected.

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GBPUSD Analysis.
No changed in our view, GBPUSD stays in a trading range between 1.6251 and 1.6692. The fall from 1.6603 could possibly be resumption of downtrend and another fall towards 1.6000 area would more likely be seen, a break below 1.6251 will confirm such case.

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AUDUSD Analysis.
AUDUSD trades in a range between 0.8942 and 0.9180, and the price action in the trading range is treated as consolidation of downtrend from 0.8326. Deeper decline to 0.8700-0.8750 area is still in favor and a breakdown below 0.8942 will signal resumption of downtrend.

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