Daily Forex Analysis – November 23, 2010

GBPUSD Analysis.
GBPUSD stays below a down trend line from 1.6298 to 1.6182 and remains in downtrend from 1.6298. As long as 1.6093 key resistance holds, downtrend is expected to continue and another fall towards 1.5649 is possible. However, a break above 1.6093 resistance will indicate that the fall from 1.6298 has completed at 1.5839 already, then the following upward move could bring price to 1.6500 area.


USDCHF Analysis.
USDCHF stays in a trading range between 0.9855 and 0.9997. As long as 0.9855 support holds, the price action in the range is treated as consolidation of uptrend, and another rise towards 1.0100 area is still possible. However, below 0.9855 will suggest that the rise from 0.9548 has completed at 0.9997 already, then the following downward move could bring price back to 0.9600 area.


AUDUSD Analysis.
AUDUSD formed a cycle bottom at 0.9724 level on 4-hour chart. Support is at 0.9815, as long as this level holds, upward move is expected to continue and next target would be at 1.0000 area. Only break below 0.9815 will suggest that the bounce from 0.9724 has completed.


EURUSD Analysis.
EURUSD dropped sharply from 1.3785, suggesting that a cycle top has been formed on 4-hour chart. Deeper decline towards 1.3448 previous low would more likely be seen later today, a breakdown below this level will indicate that the downtrend from 1.4281 has resumed, then next target would be at 1.3200-1.3300 area.


USDCAD Analysis.
USDCAD’s fall from 1.0260 extended to 1.0121 only. The subsequent bounce has brought price back to a trading range between 1.0121 and 1.0260. Sideways movement in the range is expected in a couple of days, and one more rise towards 1.0372 would more likely be seen after consolidation, only break below 1.0121 could trigger another fall towards 0.9977 previous low.


USDJPY Analysis.
USDJPY traded in a narrow range between 83.03 and 83.78. The price action in the range is treated as consolidation of uptrend from 80.30. As long as 83.03 support holds, another rise to 84.50 could be expected after consolidation. Only a break below 83.03 support will suggesting that a cycle top is being formed on 4-hour chart, then pullback to 82.00 area could be seen.


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