Daily Forex Analysis – October 27, 2011

AUDUSD Analysis.
AUDUSD remains in uptrend, the fall from 1.0500 is treated as consolidation of uptrend. Support is now at the lower border of the price channel on 4-hour chart, as long as the channel support holds, uptrend could be expected to continue, and another rise to 1.0600 could be seen. On the downside, a clear break below the channel support could indicate that lengthier consolidation of uptrend is underway, then the pair will find support at 1.0200 area.

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USDJPY Analysis.
USDJPY traded in a narrow range between 75.71 and 76.47. As long as 76.47 resistance holds, the price action in the range is treated as consolidation of downtrend from 77.48, and another fall towards 75.00 could be seen. On the other side, a break above 76.47 could indicate that the fall from 77.48 has completed at 75.71 already, then the following upward move could bring price back to test 77.85 resistance.

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EURUSD Analysis.
EURUSD is forming a cycle top at 1.3974 on 4-hour chart. Pullback to 1.3700 would likely be seen in a couple of days. As long as 1.3653 key support holds, the price action from 1.3914 is treated as consolidation of uptrend from 1.3146, another rise towards 1.4500 could be expected after consolidation.

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GBPUSD Analysis.
GBPUSD is forming a cycle top at 1.6040 on 4-hour chart. Pullback to 1.5800 area would likely be seen in a couple of days. However, the fall from 1.6040 is treated as consolidation of uptrend, another rise toward 1.6400 is still possible after consolidation, and a break above 1.6040 will signal resumption of uptrend.

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USDCHF Analysis.
USDCHF may be forming a cycle bottom at 0.8728 on 4-hour chart. Further rally to test the resistance of the downtrend line would likely be seen later today. As long as the trend line resistance holds, we’d expect downtrend to resume, and another fall towards 0.8500 is still possible.

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USDCAD Analysis.
USDCAD remains in downtrend from 1.0656, the rise from 0.9989 is treated as a part of consolidation from 1.0043. As long as 1.0263 key resistance holds, downtrend could be expected to resume, and another fall towards 0.9800 is still possible. Support is at 0.9989, a breakdown below this level could signal resumption of downtrend.

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