Daily Forex Analysis - October 16, 2008

GBPUSD Analysis.
GBPUSD pulls back from 1.7630 and formed a short term cycle top on 4-hour chart. Further fall could be seen to test 1.6786 previous low support, a break of this level will signal resumption of down trend, and deeper decline is expected to 1.6000 zone. Initial resistance is located at 1.7630 only rise above this level will signal further rally towards 1.7950-1.8000 area.

USDJPY Analysis.
USDJPY pulls back from 103.06 and formed a short term cycle top on 4-hour chart. Consolidation in range between 97.91 and 103.06 is expected in a couple of days. Initial resistance is located at 103.06, only rise above this level will indicate lengthier correction to down trend is underway and delay the resumption of down trend.

EURUSD Analysis.
Being contained by 1.3785 resistance, EURUSD pulls back from 1.3768 level. Sideways consolidation in a range between 1.3258 and 1.3785 could be seen in a couple of days. Initial resistance is at 1.3785, only break above this level could signal lengthier correction to down trend.

USDCHF Analysis.
USDCHF traded in a range between 1.1128 and 1.1486 on 4-hour chart for several days. Further rally is still in favor after consolidation and a break of 1.1486 will signal resumption of up trend. Initial support is at 1.1245 and key support is now at 1.1128 level.

AUDUSD Analysis.
AUDUSD breaks above 0.7133 resistance and reaches 0.7237 only. One more rise above 0.7237 level is still possible in a couple of days. Key support is at 0.6330, a break of this level will signal resumption of down trend, and deeper decline could be seen to 0.6000 zone.

USDCAD Analysis.
USDCAD formed a short term cycle bottom at 1.1304 level and rebounds sharply to as high as 1.1931 level. Further rally to test 1.2123 is still possible later today, however, this level would more likely be held, and pullback could be seen to retest the trend line support.

For long term forex analysis.