Daily Forex Analysis – December 3, 2009

GBPUSD Analysis.
GBPUSD breaks above the falling trend line from 1.6875 to 1.6745, suggesting further rally to test 1.6745 resistance. However, next short term cycle is nearing, pullback would more likely be seen before breaking above this level. Key support is now located at 1.6550, a break below this level will indicate that a short term cycle top has been formed and the rise from 1.6271 has completed, then another fall could be seen to 1.6000 zone. On the other side, above 1.6745 will suggest that the fall from 1.6875 has completed at 1.6271 level already, then further rise is expected to follow and next target would be at 1.6950-1.7000 area.


USDJPY Analysis.
USDJPY is testing the resistance of the falling trend line from 90.60 to 89.18, a clear break above the trend line resistance will indicate that the downtrend from 92.32 has completed at 84.82 already, then the following uptrend could be seen to 89.00 or even 91.00. support level is now at 87.00 followed by 86.50, only fall below these levels could take price back to sideways movement.


AUDUSD Analysis.
AUDUSD breaks above the falling trend line from 0.9404 to 0.9321, suggesting another rally towards 0.9500 zone. However, consolidation is expected before breaking above 0.9404 previous high. Support is located at 0.9200, below this level could signal consolidation of uptrend from 0.8946.


EURUSD Analysis.
Being contained by 1.5144 resistance, EURUSD pulled back from 1.5116 level. Another rise to test 1.5144 is still possible later today, a break above this level will signal resumption of longer term uptrend from 1.3748 (Jun 16 low), then next target would be at 1.5200-1.5300 area. Support level is now at 1.5032, below this level could take price back to range trading between 1.4801 and 1.5144, then lengthier sideways movement could be seen and delay the resumption of uptrend.


USDCAD Analysis.
After touching 1.0416 support, USDCAD rebounded from 1.0405, suggesting a minor consolidation of downtrend from 1.0748 is underway. Range trading between 1.0405 and 1.0550 is expected in a couple of days. Downtrend could be seen to continue after consolidation and next target would be at 1.0206 (Oct 15 low) previous low.


USDCHF Analysis.
USDCHF is forming a sideways consolidation in a range between 0.9917 and 1.0222. Lengthier consolidation in the trading range would more likely be seen in a couple of days and another rise to 1.0100 zone to reach next short term cycle top is possible.


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