Daily Forex Analysis - October 17, 2008

AUDUSD Analysis.

After breaking above 0.7133 resistance, AUDUSD pulled back from 0.7237 and reached 0.6495 level. One more rise above 0.7237 previous high to reach next short term cycle top is still in favor. Initial support is now located at 0.6495, only fall below this level will signal resumption of down trend, and then deeper decline could be seen to 0.6000 zone.

GBPUSD Analysis.
GBPUSD formed a short term cycle top at 1.7630 level. Further fall could be seen to test 1.6786 previous low support, a break below this level will signal deeper decline towards 1.6000 zone. Initial resistance is located at 1.7630, only rise above this level will take price back to 1.7950-1.8000 area.

USDJPY Analysis.
USDJPY is forming a sideways consolidation in a range between 97.91 and 103.06. Further fall to test 95.77 (Mar 17 low) support could be seen after consolidation, and a break below 97.91 level will confirm such case. However, the next cycle top on daily chart is nearing, one more rise above 103.06 to reach the cycle top is still possible next week.

EURUSD Analysis.
EURUSD is forming a sideways consolidation in a range between 1.3258 and 1.3785. As long as 1.3785 resistance holds, we’d expect down trend to resume, and further fall could be seen to 1.3000 after consolidation. Only break above 1.3785 level could signal lengthier correction to down trend.

USDCHF Analysis.
USDCHF breaks above 1.1486 previous high resistance and pulls back from 1.1488 level. One more rise above 1.1488 is still possible after consolidation. Initial support is at 1.1245 and key support is now at 1.1128 level, a break below 1.1128 will indicate that the uptrend from 1.0693 (Sep 22 low) has completed, and then pullback towards 1.0800 zone could be seen to follow.

USDCAD Analysis.
USDCAD is forming a sideways consolidation in a range between 1.1304 and 1.2123. Pullback towards 1.1450 zone could be seen in a couple of days. Initial resistance is at 1.1995 and key resistance is located at 1.2123 level.