Daily Forex Analysis – December 22, 2008

USDCHF Analysis.
USDCHF’s rebound from 1.0410 extended further to as high as 1.1130, suggesting that the short term down trend from 1.2249 has completed. Further rise to 1.1300 to reach the next short term cycle top on 4-hour chart is still possible later today, and the next cycle top is nearing. Key support is now located at 1.0900, a break down below this level will confirm the cycle top, and the following pullback will bring price back to1.0700 zone.

20081222_usdchf_1

AUDUSD Analysis.
AUDUSD might be forming a short term cycle bottom at 0.6763 level on 4-hour chart. Rebound towards 0.7000 is expected in a couple of days. Initial support is at the up trend line from 0.6292 to 0.6486, a break below the trend line support will indicate that the rise from 0.6075 (Nov 20 low) has completed, and then deeper decline could be seen to 0.6500 level.

20081222_audusd_1

USDCAD Analysis.
USDCAD breaks above the down trend line on 4-hour chart, suggesting that a short term cycle bottom has been formed at 1.1820, and the short term down trend from 1.3005 has completed. Further rebound is expected to 1.2700 after consolidation.

20081222_usdcad_1

EURUSD Analysis.
EURUSD formed a short term cycle top at 1.4719 level on 4-hour chart, and the fall from 1.4719 extended to 1.3825 last week. Deeper decline to 1.3500 zone to reach the next cycle bottom is still possible later today, and the next cycle bottom is nearing.

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GBPUSD Analysis.
GBPUSD pulls back sharply from 1.5722, signifying that the pair is back to range trading between 1.4466 and 1.5722. Further fall is still possible to 1.4650 zone later today, and rebound would more likely be seen before breaking below 1.4466 previous low support. However, below 1.4466 will signal deeper decline towards 1.4000 level.

20081222_gbpusd_1

USDJPY Analysis.
USDJPY formed a short term cycle bottom at 87.13 level on 4-hour chart. Further rebound could be seen in a couple of days, and the short term target would be at 91.50 level. Initial support is located at 87.13, only fall below this level will signal deeper decline towards 86.00 zone.

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