Daily Forex Analysis – October 7, 2010

GBPUSD Analysis.
GBPUSD stays in a rising price channel and remains in uptrend from 1.5296. Further rise to test 1.5997 (Aug 6 high) resistance would more likely be seen. Support is at the lower border of the price channel, now at 1.5775, as long as the channel support holds, uptrend could be expected continue. Key support is at 1.5669, only fall below this level will indicate that the uptrend from 1.5296 has completed, then another fall towards 1.5296 previous low could be seen to follow.


AUDUSD Analysis.
AUDUSD’s uptrend from 0.8771 extended to as high as 0.9842 and is now facing 0.9849 (2008 high) resistance, breaking above this level would more likely be seen later today. Initial support is at 0.9755, only break below this level would indicate that lengthier consolidation of uptrend is underway, then deeper decline towards the uptrend line from 0.8860 to 0.9541 could be seen.


USDCHF Analysis.
USDCHF broke below 0.9634 (2008 low) and the fall from 1.1730 (Jun 1 high) extended to as low as 0.9599 level. Further decline is still possible in couple of days and next target would be at  0.9500 area. Resistance levels are 0.9650 and 0.9695.


USDCAD Analysis.
USDCAD’s downward movement from 1.0672 extended to as low as 1.0062 level. Being supported by the trend line from 1.0138 (jun 21 low) to 1.0107 (Aug 5 low), the pair rebounds to 1.0120, suggesting that a cycle bottom is being formed on 4-hour chart. Consolidation of downtrend would more likely be seen in a couple of days.



EURUSD Analysis.
EURUSD stays above a rising trend line on 4-hour chart and remains in uptrend from 1.2643, and the rise extended to as high as 1.3947 level. Uptrend is expected to continue in a couple of days. Support is at the trend line now at 1.3755, only a clear break below the trend line support could indicate that the rise from 1.2643 is complete.


USDJPY Analysis.
USDJPY broke below 82.87 support and reached as low as 82.76 level. Further decline towards 79.75 (1995 low) is now in favor. Key resistance is at 83.97, only break above this level could bring price back towards 85.92.


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