Daily Forex Analysis – October 19, 2011

AUDUSD Analysis.
AUDUSD is forming a cycle top at 1.0371 on 4-hour chart. Another fall to re-test 1.0100 key support would likely be seen later today, a breakdown below this level will indicate that the rise from 0.9390 had completed at 1.0371 already, then the following downward move could bring price back to 0.9900 zone. However, as long as 1.0100 support holds, one more rise to 1.0500 is still possible.


EURUSD Analysis.
EURUSD broke below 1.3685 key support, suggesting that a cycle top had been formed at 1.3914, and the rise from 1.3146 has completed. Deeper decline is expected in a couple of days, and target would be at 1.3500 area. Resistance levels are at 1.3820 and 1.3914, only break above these levels could trigger another rise to 1.4100 zone.


USDCHF Analysis.
USDCHF broke above 0.9040 resistance, suggesting that a cycle bottom has been formed at 0.8881 on 4-hour chart, further rally is possible later today, and target would be at 0.9100-0.9150 area. However, the rise is treated as consolidation of downtrend from 0.9314, another fall could be seen after consolidation, and a breakdown below 0.8881 could signal resumption of downtrend.


USDJPY Analysis.
USDJPY is forming a sideways consolidation in a range between 76.09 and 77.48. Lengthier consolidation in the range is expected to continue in next several days.


GBPUSD Analysis.
GBPUSD has formed a cycle top at 1.5851 on 4-hour chart. Deeper decline would likely be seen in a couple of days, and the target would be at 1.5500 area. Key resistance is at 1.5851, only break above this level could signal resumption of uptrend.


USDCAD Analysis.
USDCAD is forming a cycle bottom at 1.0043 on 4-hour chart. Another rise to test 1.0275 key resistance is possible later today, a break above this level will confirm the cycle bottom. However, the rise from 1.0043 is likely consolidation of downtrend from 1.0656, another fall towards 0.9900 is still possible after consolidation.