Daily Forex Analysis – December 7, 2010

EURUSD Analysis.
After touching the downtrend line from 1.4281 to 1.3785, EURUSD pulled back from 1.3437, suggesting that a cycle top is being formed on 4-hour chart. Key resistance is now at 1.3437, as long as this level holds, downtrend from 1.4281 is expected to continue and another fall to 1.2800 could be seen. However, a break above 1.3437 will indicate that lengthier consolidation of downtrend is underway, then further rise to 1.3600 could be seen.

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GBPUSD Analysis.
Being contained by the price channel on 4-hour chart, GBPUSD pulled back from 1.5787, suggesting that a cycle top is being formed. Key resistance is now at 1.5787, as long as this level holds, downtrend from 1.6298 is expected to continue and another fall to 1.5300-1.5400 is possible. However, a break above 1.5787 will indicate that lengthier consolidation of downtrend is underway, then next target would be at 1.5900 area.

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AUDUSD Analysis.
AUDUSD is testing 0.9953 resistance, a break above this level will suggest that the rise from 0.9537 is resumption of uptrend from 0.8066 (May 25 low), then another rise towards 1.0500 could be seen. Support is at 0.9775, only break below this level will indicate that a cycle top has been formed at 0.9936 level on 4-hour chart, then pullback 0.9700 area is expected to follow.

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USDCHF Analysis.
USDCHF is forming a cycle bottom at 0.9725 level on 4-hour chart. Now the bounce from 0.9725 could possibly be resumption of uptrend from 0.9463, another rise towards 1.0066 previous high is expected in next several days.

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USDJPY Analysis.
USDJPY remains in downtrend from 84.40. Resistance is at 83.10, as long as this level holds, downtrend is expected to continue and next target would be at 81.50 area. However, a break above 83.10 could indicate that the fall from 84.40 has completed.

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USDCAD Analysis.
Being contained by 0.9977 previous low support, USDCAD consolidates above 1.0000. Another fall to test 0.9977 support is still possible later today, a break below this level will target 0.9700-0.9800 area. Resistance is at 1.0100, only break above this level could indicate that the fall from 1.0285 is complete.

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