Daily Forex Analysis – October 29, 2010

EURUSD Analysis.
Being contained by 1.3698 support, EURUSD rebounded from 1.3734, suggesting that sideways movement in a range between 1.3698 and 1.4152 is underway. Lengthier consolidation in the trading range is expected in a couple of days, and further rise to 1.4000 area to reach next cycle top would more likely be seen later today.

20101029_eurusd_1

GBPUSD Analysis.
GBPUSD’s bounce from 1.5649 extended to as high as 1.5977 level. As long as 1.6105 previous high resistance holds, the rise from 1.5649 is treated as  correction of downtrend from 1.6105, and another fall to 1.5400 is still possible. However, a break above 1.6105 will indicate that the uptrend from 1.5296 has resumed, then anther rise towards 1.7000 could be seen.

20101029_gbpusd_1

USDJPY Analysis.
After touching 81.91 resistance, USDJPY dropped from 81.98, suggesting another fall to test 80.41 is underway, a break below this level will indicate that the downtrend from 85.92 has resumed, then another fall towards 79.75 (1995 low) could be seen. On the upside, as long as 80.41 support holds, one more rise 83.00-84.00 area is still possible.

20101029_usdjpy_1

AUDUSD Analysis.
After touching 0.9661 support, AUDUSD rebounded from 0.9651 level. However, another fall towards 0.9400 is still in favor and a breakdown below 0.9651 could signal resumption of downtrend. Key resistance is at 0.9998, only break above this level could trigger another rise to 1.0200 zone.

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USDCHF Analysis.
Being contained by the upper border of the price channel on 4-hour chart, USDCHF pulled back from 0.9928, suggesting that a cycle top is being formed. Deeper decline is still possible later today and target would be at the lower border of the channel.

20101029_usdchf_1

USDCAD Analysis.
USDCAD traded in a range between 1.0153 and 1.0372. Deeper decline to 1.0100 area to reach next cycle bottom is expected in a couple of days. Key resistance is at 1.0372, only a break above this level could trigger another rise towards 1.0600 zone.

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