Daily Forex Analysis – November 18, 2010

USDCHF Analysis.
Being contained by 0.9971 resistance, USDCHF pulled back from 0.9975. Support is at 0.9820, as long as this level holds, uptrend from 0.9548 is expected to continue and another rise to 1.0100 is still possible. However, a breakdown below 0.9820 will indicate that a cycle top has been formed at 0.9975 on 4-hour chart and the rise from 0.9548 has completed, then range trading between 0.9463 and 1.0000 could be seen to follow.

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AUDUSD Analysis.
AUDUSD remains in downtrend from 1.0182. The bounce from 0.9724 is more likely consolidation of downtrend. As long as 0.9919 key resistance holds, downtrend is expected to continue after consolidation and another fall towards 0.9651 key support is still possible, a breakdown below this level will indicate that the long term uptrend from 0.8066 (May 25 low) has completed at 1.0182 already, then the following downward move could bring price to 0.9000 or even lower. However, a break above 0.9919 could indicate that the fall from 1.0182 has completed at 0.9724 already, then another rise towards 1.0182 previous high could be seen.

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EURUSD Analysis.
EURUSD runs in a falling price channel and remains in downtrend from 1.4281, and the fall extended to as low as 1.3448 level. Initial resistance is at the upper border of the channel followed by 1.3660, as long as this level holds, downtrend could be expected to continue.

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USDCAD Analysis.
USDCAD’s bounce from 0.9977 extended further to as high as 1.0260. Support is at 1.0173, as long as this level holds, upward move is expected to continue and another rise towards 1.0372 resistance is still possible.

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USDJPY Analysis.
USDJPY remains in uptrend from 80.30 and the rise extended to as high as 83.59 level. Another rise is expected later today and next target would be at 84.00 area. Support is at 82.90 followed by 82.60, only break below these levels could bring price back to test 81.65 key support.

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GBPUSD Analysis.
After a sharp drop, GBPUSD consolidated above 1.5839. Another fall would more likely be seen later today and next target would be at 1.5750 area. Key support is at 1.5649, a break below this level will indicate that the longer term uptrend from 1.5296 (Sep 7 low) is complete.

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