Daily Forex Analysis – December 16, 2010

EURUSD Analysis.
EURUSD is forming a cycle top at 1.3497 level on 4-hour chart. Deeper decline to test 1.3165 key support is expected later today, a breakdown below this level will confirm the cycle top, then the following downward move could bring price to 1.2500 area.

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GBPUSD Analysis.
GBPUSD drops sharply to as low as 1.5530 level. Now the fall from 1.5910 is treated as resumption of downtrend, deeper decline towards 1.5484 previous low could be seen later today. Resistance is at 1.5650, as long as this level holds, downtrend will continue.

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USDJPY Analysis.
USDJPY broke above 84.40 resistance and reached as high as 84.49 level. However, lengthier sideways movement is still possible and another fall to 82.50 area would likely be seen. Support is at 83.75, a break below this level will bring price back to the trading range between 82.34 and 84.40.

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AUDUSD Analysis.
AUDUSD broke below the uptrend line, suggesting that the rise from 0.9537 has completed at 1.0027 already. Deeper decline towards 0.9752 support is expected later today, below this level will target 0.9650 area.

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USDCHF Analysis.
Being contained by 0.9548 support, USDCHF rebounded from 0.9561. The bounce is treated as consolidation of downtrend from 1.0066, range trading between 0.9548 and 0.9750 would likely be seen in a couple of days.

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USDCAD Analysis.
After touching 1.0002 previous low support, USDCAD rebounded from 1.0001, lengthier sideways movement in the range between 1.0000 and 1.0140 is expected in a couple of days. Key resistance is at 1.0140, a break above this level could bring price to 1.0200 area.

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