Daily Forex Analysis - October 24, 2008

USDJPY Analysis.
Being supported by 95.77 (Mar 17 low), USDJPY rebounds from 95.93 level. The pair is now testing 95.77 long term support, a break of this level will signal deeper decline towards 94.00 zone. However, the rise from 95.93 could possibly be resumption of up trend, further rise towards 99.50 level to reach next short term cycle top is possible next week.

USDCAD Analysis.
USDCAD pulls back from 1.2740 and is in consolidation to up trend. Initial support is at the up trend line from 1.1304 to 1.1740, as long as the trend line support holds, we’d expect up trend to resume, and further rise towards 1.3000 is still possible. Only fall below the trend line support will indicate that the uptrend from 1.1304 has completed and then deeper decline could be seen to 1.2100 zone.

USDCHF Analysis.
USDCHF is forming a short term cycle top at 1.1710 on 4-hour chart. Consolidation in a range between 1.1500 and 1.1710 could be seen in next several days. As long as 1.1500 support holds, we’d expect uptrend to resume, and further rise is possible to 1.2000 zone after consolidation, a break of 1.1710 will signal resumption of up trend. Only fall below 1.1500 will indicate that the up trend from 1.1128 has completed and then pullback to 1.1400 zone is expected to follow.

AUDUSD Analysis.
Being supported by 0.6495, AUDUSD rebounds from 0.6528 level. The pair might be forming a short term cycle bottom on 4-hour chart. Further rally towards 0.7064 is possible later today, a break of this level will signal further rise to test 0.7237 level.

GBPUSD Analysis.
GBPUSD remains in down trend, and the fall from 1.7630 extends to as low as 1.6043 level. Further fall is expected to 1.5800 zone, and a break below 1.6043 will signal resumption of down trend. Initial resistance is at 1.6500 followed by the upper boundary of the price channel.

EURUSD Analysis.
EURUSD rebounds from 1.2727 and is testing the price channel resistance, deeper decline could be seen to 1.2500 zone if the price channel resistance holds. However, above the channel resistance will indicate lengthier consolidation is underway, and delay the resumption of down trend.