Daily Forex Analysis – September 22, 2010

GBPUSD Analysis.
Being supported by the lower border of the price channel on 4-hour chart, GBPUSD rebounded from 1.5503, suggesting that a cycle bottom is being formed. Now the rise from 1.5503 could possibly be resumption of uptrend from 1.5296, further rally is in favor and next target would be at 1.5800-1.5850 area. Support is at 1.5503, only break below this level could indicate that the rise from 1.5296 has completed at 1.5728 already, then the following downward move could bring price back to re-test 1.5296 previous low support.

20100922_gbpusd_1

USDCAD Analysis.
Being contained by the upper border of the price channel on 4-hour chart, USDCAD formed a cycle top at 1.0349. Now the pair is facing 1.0215 support, a breakdown below this level will confirm that the downtrend from 1.0672 has resumed, then deeper decline could be seen to 1.0150 area. Key resistance is at 1.0349, only break above this level could indicate that the downward movement has completed at 1.0215 already, then the following uptrend could turn price back to 1.0600 zone.

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USDCHF Analysis.
USDCHF is facing 0.9932 support, a breakdown below this level will indicate that the downtrend from 1.1730 (Jun 1 high) has resumed, then further fall to 0.9700 area could be seen. On the upside, as long as 0.9932 support holds, lengthier consolidation of downtrend is possible to continue, and range trading between 0.9932 and 1.0277 may be seen.

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AUDUSD Analysis.
AUDUSD stays in a rising price channel on 4-hour chart and remains in uptrend from 0.8771, and the rise extends to as high as 0.9582 level. Further rise is still possible in a couple of days and next target would be at 0.9700-0.9750 area. Support is located at the lower border of the price channel, as long as the channel support holds, uptrend could be expected to continue.

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EURUSD Analysis.
EURUSD continues its upward move from 1.2643 and is now facing 1.3333 previous high resistance. Minor consolidation would more likely be seen before breaking above this level and sideways movement above 1.3135 is expected.

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USDJPY Analysis.
Being contained by 85.89 resistance, USDJPY dropped from 85.92, suggesting that a cycle top has been formed on 4-hour chart. The fall from 85.92 is more likely correction of uptrend from 82.87, pullback to 84.00 area to reach next cycle bottom is expected.

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