Daily Forex Analysis – November 2, 2010

EURUSD Analysis.
As expected, EURUSD pulled back from the upper border of the triangle pattern on 4-hour chart, suggesting that a cycle top has been formed at 1.4011 level. Deeper decline towards the lower border of the pattern to reach next cycle bottom is possible later today. As long as 1.3698 key support holds, the price action from 1.4152 is treated as consolidation of uptrend from 1.2587 (Aug 24 low) and another rise towards 1.4500 would more likely be seen after consolidation.


USDCHF Analysis.
USDCHF continues its upward move from 0.9463 and the rise extended to as high as 0.9971 level. Further rise is still possible in a couple of days and next target would be at 1.0000-1.0050 area. Support remains at the lower border of the channel, only a clear break below the channel support could indicate that the uptrend from 0.9463 is complete.


GBPUSD Analysis.
No changed in our view, GBPUSD is facing 1.6105 key resistance, a break above this level will indicate that the longer term uptrend from 1.5296 (Sept 7 low) has resumed, then next long term target would be at 1.6500 area. Support is at 1.5875, only break below this level will suggest that lengthier consolidation of uptrend is underway, then another fall to re-test 1.5649 could be seen.


USDJPY Analysis.
USDJPY remains in downtrend from 85.92. Another fall towards 79.75 (1995 low) is expected later today. Key resistance is at 81.98, only break above this level could indicate that the fall from 85.92 is complete.


AUDUSD Analysis.
AUDUSD continues its sideways movement in a range between 0.9651 and 0.9998. Further rise to 0.9950 area is expected later today. As long as 0.9998 resistance holds, one more fall to 0.9600 to reach next cycle bottom is still possible.


USDCAD Analysis.
USDCAD broke below 1.0153 support and reaches as low as 1.0124 level. Deeper decline to 1.0050-1.0100 area to reach next cycle bottom on 4-hour chart is expected. However, the fall from 1.0372 is more likely correction of uptrend from 0.9979, rebound would more likely be seen before breaking below 0.9979 key support.


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