Daily Forex Analysis – December 29, 2009

USDJPY Analysis.
USDJPY might be forming a short term cycle top at 91.86 level on 4-hour chart. Pullback towards the lower border of the rising price channel would more likely be seen later today. Resistance is located at 91.86, only rise above this level could indicate that the uptrend from 87.37 has resumed, then further rally could be seen to re-test 92.32 (Oct 27 high) resistance.


EURUSD Analysis.
EURUSD formed a short term cycle bottom at 1.4218 level on 4-hour chart. Range trading between 1.4218 and 1.4417 is expected and pullback to 1.4270 would more likely be seen later today. Resistance is at 1.4417, above this level could signal further rally to 1.4475 area.


USDCHF Analysis.
USDCHF might be forming a short term cycle bottom at 1.0320 level on 4-hour chart. Bounce to 1.0430 area is expected later today. Support level is now located at 1.0320, only break below this level would signal another fall towards 1.0250 area.


GBPUSD Analysis.
GBPUSD trades in a narrow range between 1.5920 and 1.6020. As long as 1.0602 resistance holds, the price action from 1.5920 is treated as consolidation of downtrend and another fall could be expected to 1.5850 area. However, a break above 1.6020 will indicate that a short term cycle bottom has been formed and the fall from 1.6409 has completed.


AUDUSD Analysis.
AUDUSD formed a short term cycle bottom at 0.8734 level on 4-hour chart. Further rally is still possible later today and next target would be at 0.8970-0.8900 area. However, the rise is more likely consolidation of downtrend from 0.9404, another fall towards 0.8500 is still possible after consolidation.


USDCAD Analysis.
USDCAD remains in downtrend from 1.0745 and the fall extends further to as low as 1.0416 level. Deeper decline to test 1.0405 previous low support is still possible later today. However, minor consolidation would more likely be seen before breaking below this level.


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