Daily Forex Analysis – January 8, 2009

EURUSD Analysis.
EURUSD breaks above 1.3658 key resistance, suggesting that a short term cycle bottom has been formed at 1.3313 on 4-hour chart. However, the rise from 1.3313 is treated as consolidation of downtrend, one more fall is still possible to1.3100 zone after consolidation, and a break down below 1.3313 will confirm the resumption of downtrend.

20090108_eurusd_1

USDJPY Analysis.
USDJPY drops below 92.83 support, suggesting that a short term cycle top has been formed at 94.61 on 4-hour chart. Deeper decline towards 89.72 level could be seen in next several days. Near term resistance is located at 94.61, only rise above this level will signal further rally to 96.00 zone.

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AUDUSD Analysis.
AUDUSD is forming a short term cycle top at 0.7267 on 4-hour chart. Key support is located at 0.7033, a break down below this level will confirm the cycle top, and then deeper decline could be seen to 0.6900 zone.

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USDCAD Analysis.
USDCAD rebounds from 1.1761 and formed a short term cycle bottom on 4-hour chart. Further rise to 1.2200 zone is expected in a couple of days. Initial support is at 1.1761, only fall below this level will signal resumption of down trend.

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GBPUSD Analysis.
GBPUSD’s rebound from 1.4350 extends to as high as 1.5279 level. Further rise is still possible to test 1.5722 previous high resistance, and a break above 1.5279 will confirm such case. Initial support is now at 1.4925, below this level will indicate that the rise from1.4350 has completed.

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USDCHF Analysis.
USDCHF breaks below 1.1040 support and has formed a short term cycle top at 1.1277 on 4-hour chart. Pullback to retest 1.0366 is possible in next several days. Initial resistance is located at 1.1277, only rise above this level will signal further rally towards 1.1500 zone.

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