Daily Forex Analysis – December 5, 2008

EURUSD Analysis.
EURUSD breaks below 1.2562 support, suggesting that the fall from 1.3080 could possibly be resumption of down trend, and the rebound from 1.2549 is now treated as correction to down trend. Deeper decline could be seen to retest 1.2329 (Oct 28 low) support after correction. If this level gives way, the next target would be at 1.2000 zone.


USDCHF Analysis.
USDCHF fails to test 1.2198 resistance and pulls back from 1.2186, suggesting that a short term cycle top has been formed on 4-hour chart. Deeper decline is still possible to test 1.1828 previous low support later today, and this level would more likely be held.


GBPUSD Analysis.
GBPUSD breaks below 1.4557 (Nov 13 low), suggesting the the consolidation of long term down trend has completed at 1.5534 level. Deeper decline is expected to 1.4000 zone in the next several days. Initial resistance is at 1.4814 followed by 1.5069, as long as 1.5069 level holds, down trend will continue.


AUDUSD Analysis.
AUDUSD stays in the trading range between 0.6332 and 0.6617. Pullback to retest 0.6322 is now in favor later today. A break below this level will signal deeper decline towards 1.6100 zone. Initial resistance is located at 0.6535 followed by 0.6617.


USDCAD Analysis.
USDCAD’s rebound from 1.2125 extends to as high as 1.2801 level. Further rise is still possible to test 1.3015 (Oct 28 high) resistance, pullback and consolidation would more likely be seen before breaking above this level. Initial support is at the up trend line on 4-hour chart, a break below this trend line support will indicate that the rebound from 1.2125 has completed.


USDJPY Analysis.
USDJPY is moving to the next short term cycle bottom on 4-hour chart, and the next cycle bottom is nearing. Key resistance is now located at 93.68, above this level will indicate that a cycle bottom has been formed and the fall from 97.43 has completed.


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