Daily Forex Analysis – October 21, 2011

GBPUSD Analysis.
GBPUSD traded in a range between 1.5631 and 1.5851 for several days. As long as 1.5631 support holds, the price action in the range could be treated as consolidation of uptrend from 1.5272, another rise to 1.6000 is still possible. On the other side, a breakdown below 1.5631 will indicate that lengthier correction of uptrend is underway, then deeper decline could be seen to 1.5500 area.


AUDUSD Analysis.
AUDUSD continued its sideways movement in a range between 1.0102 and 1.0371. The price action in the range is likely consolidation of uptrend from 0.9390, as long as 1.0102 key support holds, one more rise to 1.0500 is still possible. However, a breakdown below 1.0102 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.


EURUSD Analysis.
EURUSD is in correction of uptrend from 1.3146. Support is at 1.3653, a breakdown below this level could trigger another fall to 1.3500 area. Resistance is at 1.3914, only break above this level could signal resumption of uptrend.


USDCHF Analysis.
USDCHF may be forming a cycle top at 0.9082 on 4-hour chart. A breakdown below 0.8881 key support will indicate that that downtrend from 0.9314 has resumed, then another fall to 0.8500 could be seen.


USDJPY Analysis.
No changed in our view, USDJPY is forming a sideways consolidation in a range between 76.09 and 77.48. Lengthier consolidation in the range would likely be seen in next several days. Key resistance is at 77.85, only break above this level could indicate that the longer term downtrend from 85.51 is complete.


USDCAD Analysis.
USDCAD remains in downtrend from 1.0656, the price action from 1.0043 is treated as consolidation of downtrend. Another fall could be seen after consolidation, and next target would be at 0.9900 zone. Support is at 1.0043, a breakdown below this level could signal resumption of downtrend.


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