Daily Forex Analysis – December 31, 2008

GBPUSD Analysis.
After breaking below  1.4466 (Dec 4 low) support, GBPUSD forms a sideways consolidation on 4-hour chart. Initial resistance is now located at 1.4600, as long as this level holds, we’d expect down trend to resume, and further fall is still possible to 1.4000 zone in next several days. Key resistance is at 1.4766, only rise above this level will indicate that the short term down trend from 1.5722 has terminated.


EURUSD Analysis.
EURUSD trades in range between 1.3825 and 1.4360. One more rise is still possible to retest 1.4719 resistance in next several days. The price action from1.4719 is more likely consolidation to long term up trend, pullback would more likely be seen before breaking above this level.


AUDUSD Analysis.
AUDUSD is in consolidation of down trend, further rally towards 1.7140 is possible in next several days. As long as 0.7140 resistance holds, we’d expect down trend to resume, and deeper decline could be seen to 0.6500 zone after consolidation, and a break down below 0.6755 will confirm the resumption of down trend.


USDCHF Analysis.
USDCHF is in down trend, and the rebound from 1.0366 is treated as consolidation of down trend. Deeper decline is still in favor. The short term target would be at 1.0300 zone. Initial resistance is located at 1.0631, only rise above this level will signal further rally towards 1.0800.


USDCAD Analysis.
USDCAD breaks above 1.2251 resistance and reaches 1.2334 level only. Pullback to test 1.1984 support could be seen later today. As long as this level holds, we’d expect one more rise above 1.2394 resistance.


USDJPY Analysis.
USDJPY formed a short term cycle top at 90.98 level on 4-hour chart. Pullback towards 88.00 zone is now in favor. Initial resistance is at 90.98, above this level will signal further rally towards 93.00-50 area.


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