Daily Forex Analysis – December 31, 2010

EURUSD Analysis.
EURUSD broke above 1.3274 resistance. Now the price action from 1.2969 is more likely a sideways movement. Range trading between 1.2969 and 1.3497 could be seen in next several days. The sideways movement is treated as consolidation of longer term downtrend from 1.4281 (Nov 4 high), as long as 1.3497 key resistance holds, one more fall towards 1.2500 is still possible.


AUDUSD Analysis.
AUDUSD broke above 1.0182 (Nov 5 high) and reached as high as 1.0197 level. Support remains at the uptrend line on 4-hour chart, as long as the trend line support holds, uptrend is expected to continue and next target would be at 1.0300 area.


USDCHF Analysis.
USDCHF’s downward movement from 1.0066 extends to as low as 0.9340. Resistance is at the upper border of the falling price channel on 4-hour chart, as long as the channel resistance holds, downtrend could be expected to continue and next target would be at 0.9200 zone.


USDJPY Analysis.
USDJPY remains in downtrend from 84.49 and the fall extended to as low as 81.29. Deeper decline is still possible later today and next target would be at 80.50-81.00 area. Resistance is at 82.50, as long as this level holds, downtrend will continue.


GBPUSD Analysis.
Being contained by 1.5296 (Sep 7 low) long term key support, GBPUSD moves sideways in a range between 1.5344 and 1.5535. The price action in the range is treated as consolidation of downtrend from 1.5910, another fall to test 1.5296 support is still possible, a break below this level will confirm that the long term uptrend from 1.4230 (May 20 low) is complete.


USDCAD Analysis.
USDCAD stays below a downtrend line on 4-hour chart and remains in downtrend from 1.0207. as long s the trend line resistance holds, downtrend is expected to continue and another fall towards 0.9930 (Apr 21 low) long term support is still possible.