Daily Forex Analysis – December 16, 2009

USDCHF Analysis.
USDCHF’s uptrend extends further to as high as 1.0428. Now the pair is facing the upper border of the rising price channel on 4-hour chart, a minor consolidation is expected in a couple of days and pullback to the bottom of the channel would more likely be seen. As long as the channel support holds, we’d expect uptrend to resume and one more rally towards1.0500 area is still possible after consolidation.

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GBPUSD Analysis.
GBPUSD continues to trade in a narrow range between 1.6167 and 1.6371, and has formed a short term cycle bottom at 1.6167 level on 4-hour chart. Bounce towards 1.6400-1.6450 to reach next cycle top would more likely be seen. However, the rise from 1.6167 is treated as consolidation of downtrend from 1.6721, another fall towards 1.6000 area is expected after consolidation.

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AUDUSD Analysis.
AUDUSD continues its sideways movement in a range between 0.9014 and 0.9193. One more rise towards the falling trend line from 0.9404 to 0.9321 to reach next short term cycle top would more likely be seen. Initial support is at 0.9014, below this level could trigger another fall to test 0.8916 critical support.

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EURUSD Analysis.
EURUSD’s downtrend extends further to as low as 1.4504. Deeper decline is still possible after a minor consolidation and next target would be at 1.4400-1.4450 area. Resistance is now at 1.4630 followed by 1.4685. As long as these levels holds, downtrend will continue.

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USDJPY Analysis.
USDJPY breaks above 89.80 resistance, suggesting another rally towards 90.76 previous high. Support is now located at the rising trend line from 87.37 to 88.31, as long as the trend line support holds, uptrend will continue.

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USDCAD Analysis.
No changed in our view, USDCAD traded in range between 1.0405 and 1.0748 for several weeks. 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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