Daily Forex Analysis – December 8, 2009

USDCHF Analysis.
USDCHF broke above 1.0222 resistance. The subsequent pullback from 1.0244 is more likely minor consolidation of uptrend. Another rise towards 1.0338 key resistance is still possible after consolidation. Support level is now at 1.0135 followed by 1.0075, as long as 1.0135 support holds, we’d expect uptrend to continue, however, below this level will suggest that a short term cycle top is being formed at 1.0244 on 4-hour chart, then range trading between 1.0075 and 1.0244 is expected to follow.


EURUSD Analysis.
EURUSD dropped below 1.4801 support and reached as low as 1.4755. Deeper decline is still possible later today and next target would be at 1.4650-1.4700 area. Resistance is at 1.4910, above this level will suggest that a short term cycle bottom is being formed at 1.4755 level on 4-hour chart, then range trading between 1.4755 and 1.4980 could be seen to follow.


GBPUSD Analysis.
GBPUSD remains in downtrend from 1.6721 and the fall has extended further to as low as 1.6313. As long as 1.6525 resistance holds, downtrend is expected to continue and next target is to test 1.6271 support.


USDJPY Analysis.
USDJPY pulled back from 90.76, suggesting that a short term top has been formed on 4-hour chart. Range trading between 87.80 and 90.76 is expected in next several days. However, the fall from 90.76 is more likely consolidation of uptrend from 84.82, another rise towards 91.50-92.00 area is still possible after consolidation.


AUDUSD Analysis.
AUDUSD formed a short term cycle top at 0.9321 level on 4-hour chart and is now in downtrend. Deeper decline to test 0.8916 key support is expected in a couple of days, a breakdown below this level will indicate that the uptrend from 0.7703 (July 13 low) has completed at 0.9404 level already. Key resistance is at 0.9321, only rise above this level could trigger a major rise targeting 0.9500 area.


USDCAD Analysis.
No changed in our view, USDCAD stays in a trading range between 1.0405 and 1.0748. Lengthier consolidation in range is still possible in a couple of day. Another fall towards 1.0206 (Oct 15 low) previous low would more likely be seen after consolidation and a breakdown below 1.0405 will confirm resumption of downtrend.


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