Daily Forex Analysis – December 15, 2008

EURUSD Analysis.
EURUSD breaks above 1.3290 (Oct 30 high) key resistance, suggesting that the long term down trend from 1.6038 (July 15 high) has completed. The pair is now in long term up trend. Further rise is still possible to 1.3700 zone in next several days. Initial support is now at 1.3250, as long as the level holds, we’d expect up trend to continue.


GBPUSD Analysis.
GBPUSD breaks above 1.5048 resistance and is now in short term up trend. Further rise is still possible to 1.5300 zone. However, the price action from 1.4557 (Nov 13 low) is treated as consolidation to long term down trend. As long as 1.5534 resistance holds, we’d expect downtrend to resume, and one more fall below 1.4466 is still possible after consolidation.


USDJPY Analysis.
After breaking below 90.92 (Oct 24 low) support, USDJPY rebounds sharply from 88.53 level last Friday, suggesting a short term cycle bottom is being formed. Further rally is still possible to test 93.90 key resistance. A break above this level will indicate that the fall from 100.54 (Nov 4 high) has completed.


AUDUSD Analysis.
AUDUSD pulls back sharply from 0.6797 last Friday, suggesting that a cycle top has been formed on 4-hour chart. Further fall is expected to test 0.6292 level in next several days. However, a break below 0.6486 level is needed to confirm such case.


USDCHF Analysis.
USDCHF is in down trend. Deeper decline is still possible to 1.1600 zone in a couple of days. Initial resistance is now located at 1.1850, as long as this level holds, we’d expected down trend to continue.


USDCAD Analysis.
Being supported by 1.2125 previous low, USDCAD rebounds from 1.2158 level, suggesting that a short term cycle bottom is being formed on 4-hour chart. Further rally is now in favor, and short term target would be at 1.2900 zone. Only fall below 1.2158 will signal deeper decline towards 1.1800.


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