Daily Forex Analysis – October 15, 2010

USDCHF Analysis.
USDCHF’s downward move extended to as low as 0.9463. Minor consolidation would more likely be seen in a couple of days. Resistance is at the upper boundary of the falling price channel on 4-hour chart, as long as the channel resistance holds, downtrend is expected to resume and another fall to 0.9400 is still possible.

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GBPUSD Analysis.
GBPUSD continues its upward movement from 1.5296 and the rise extended to as high as 1.6065. Minor consolidation would more likely be seen in a couple of days. As long as the channel support holds, uptrend is expected to resume, and another rise to 1.6200 is still possible.

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USDCAD Analysis.
USDCAD’s fall from 1.0378 extended to as low as 0.9979, the subsequent bounce is treated as consolidation of downtrend. Another fall towards 0.9930 (Apr 21 low) is still possible after consolidation. Resistance is at the upper border of the price channel on 4-hour chart, only a clear break above the channel resistance could indicate that the downtrend from 1.0378 is complete.

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EURUSD Analysis.
EURUSD remains in uptrend from 1.2587 and the rise extended to as high as 1.4122 level. Another rise is still possible later today and next target would be at 1.4200-1.4300 area. Support is at 1.4000 followed by 1.3870.

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AUDUSD Analysis.
AUDUSD runs in a rising price channel on 4-hour chart and remains in uptrend from 0.8771. Support is at the lower border of the channel, now at 0.9755, as long as the channel support holds, uptrend is expected to continue and next target would be at 1.0100 area.

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USDJPY Analysis.
USDJPY has reached the lower border of the price channel on 4-hour chart, the bounce from 80.88 suggests that a cycle bottom is being formed. Further rally would more likely be seen later today, target is at the upper border of the channel.

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