Daily Forex Analysis – October 11, 2010

USDCAD Analysis.
USDCAD has formed a cycle top at 1.0232 level on 4-hour chart. Range trading between 1.0062 and 1.0232 would more likely be seen in a couple of days. Support is at 1.0062, a breakdown below this level will indicate that the downtrend from 1.0672 has resumed, then next target would be at 1.000 area. Key resistance is at 1.0232, a break above this level will suggest that the fall from 1.0672 has completed at 1.0062 already, then the following upward movement could bring price to 1.0600 zone.

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EURUSD Analysis.
EURUSD stays above a rising trend line on 4-hour chart and remains in uptrend from 1.2643. Support is at 1.3834, as long as this level holds, another rise is expected after a minor consolidation, however, below 1.3834 could indicate that lengthier consolidation of uptrend is underway, then deeper decline towards 1.3637 could be seen.

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GBPUSD Analysis.
GBPUSD runs in a rising price channel on 4-hour chart and remains in uptrend from 1.5296. As long as the channel support (now at 1.5827) holds, uptrend is expected to continue and next target would be at 1.6100 area. Only a clear break below the channel support will indicate that lengthier consolidation of uptrend is underway, then deeper decline to test 1.5669 key support could be seen.

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AUDUSD Analysis.
AUDUSD remains in uptrend from 0.8771. Support is at the uptrend line from 0.8860 to 0.9541, as long as the trend line support holds, uptrend could be expected to continue and further rise to 1.0000-1.0150 would more likely be seen.

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USDCHF Analysis.
USDCHF stays below a falling trend line from 1.0624 to 1.0277 and remains in downtrend. The bounce from 0.9555 is more likely consolidation of downtrend. Range trading between 0.9555 and 0.9750 is expected later today. Support is at 0.9555, a breakdown below this level will suggest that the downtrend has resumed, then another fall to 0.9500 could be seen.

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USDJPY Analysis.
USDJPY stays in a falling price channel and remains in downtrend from 85.92. As the pair has reached the lower border of the channel, minor consolidation would more likely be seen in a couple of days. However, downtrend is expected to continue after consolidation and further decline to 81.00 is still possible.

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