Daily Forex Analysis – December 23, 2010

USDJPY Analysis.
USDJPY’s fall from 84.49 extended further to as low as 83.37. Deeper decline is still possible later today and next target would be at 83.00 area. However, the next cycle bottom nearing, a break above 83.90 key resistance will indicate that the downward move has completed, then the following uptrend could bring price back to 85.00 area.


USDCHF Analysis.
USDCHF broke below 0.9548 support and reached as low as 0.9503 level. Deeper decline towards 0.9463 (Oct 14 low) is possible. Key resistance is at 0.9733, a break above this level could indicate that the fall from 1.0066 is complete.


AUDUSD Analysis.
AUDUSD is facing 1.0027 resistance, above this level could target 1.0100 area. Initial support is at 0.9950, a breakdown below this level could suggest that a cycle top is being formed on 4-hour chart, then pullback to test 0.9830 key support could be seen.


EURUSD Analysis.
EURUSD remains in downtrend from 1.3497. Initial resistance is at the  downtrend line on 4-hour chart, now at 1.3175, as long as the trend line resistance holds, downtrend is expected to continue and next target would be at 1.3000 area.


GBPUSD Analysis.
GBPUSD continues its downward move from 1.5910 and the fall extends to as low as 1.5356 level. Deeper decline is still possible in a couple of days and next target would be at 1.5296 (Sep 7 low) long term key support, a break below this level will confirm that the long term uptrend from 1.4230 (May 20 low) is complete.


USDCAD Analysis.
USDCAD broke below 1.0125 support, suggesting that the rise from 1.0001 has completed at 1.0207 already. Pullback to 1.0050 area is expected in a couple of days. Resistance is now at 1.0207, only break above this level could trigger another rise to 1.0300 area.


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