Daily Forex Analysis – December 17, 2010

USDCHF Analysis.
USDCHF stays below a falling trend line on 4-hour chart and remains in downtrend from 1.0066. As long as the trend line resistance holds, downtrend is expected to continue and one more fall to 0.9500 is still possible. Only a clear break above this trend line resistance could indicate that the downward movement from 1.0066 has completed at 0.9561 already, then the following uptrend could bring price to 1.0200 area.

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EURUSD Analysis.
EURUSD is facing 1.3165 key support, a breakdown below this level will indicate that the rise from 1.2969 has completed at 1.3497 already, then the following downward move could bring price to 1.2500 area. Resistance is at 1.3300, only break above this level could trigger another rise to re-test 1.3497 previous high resistance.

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GBPUSD Analysis.
Being contained by 1.5484 support, GBPUSD rebounded from 1.5530. Consolidation could be seen before breaking below 1.5484 previous low, and range trading between 1.5530 and 1.5700 is expected.

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USDJPY Analysis.
After breaking above 84.40 resistance, USDJPY pulled back from 84.49 level. Support is at 83.75, a break below this level could trigger another fall to 82.50 area. Resistance is at 84.49, only break above this level could signal resumption of uptrend, then next target would be at 86.00 zone.

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AUDUSD Analysis.
Being supported by the lower border of the price channel on 4-hour chart, AUDUSD rebounded from 0.9830. Another rise to re-test 1.0027 resistance is expected later today. Support is at the lower border of the channel, only a clear break below the channel support could trigger another fall to 0.9650 area.

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USDCAD Analysis.
USDCAD traded in a range between 1.0000 and 1.0140. Lengthier sideways movement in the range is expected in a couple of days. Key resistance is at 1.0140, only a break above this level could bring price to 1.0200 area.

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