Daily Forex Analysis – December 20, 2010

AUDUSD Analysis.
AUDUSD trades in the bottom of the price channel on 4-hour chart. A clear break below the channel bottom line will indicate that the uptrend from 0.9537 had completed at 1.0027 already, then the following downward move could bring price to 0.9600-0.9650 area. However, as long as the channel support holds, one more rise towards 1.0182 previous high is still possible, and a break above 0.9950 could signal resumption of uptrend.


USDCHF Analysis.
USDCHF failed to break below 0.9548 support and rebounded from 0.9558. The pair is facing the downtrend line on 4-hour chart, a clear break above the trend line resistance will suggest that the fall from 1.0066 has completed at 0.9558 already, then the following upward move could bring price back towards 1.0066 previous high.


EURUSD Analysis.
EURUSD broke below 1.5165 support last week, suggesting that the rise from 1.2969 had completed at 1.3497 already. Deeper decline is now in favor and next target would be at 1.3000 area. Resistance is at the downtrend line on 4-hour chart, as long as the trend line resistance holds, downtrend could be expected to continue.


GBPUSD Analysis.
GBPUSD broke below 1.5484 support, suggesting that the longer term downtrend from 1.6298 has resumed. Further decline is expected in a couple of days, next target would be at 1.5300 area. Resistance is at 1.5646, as long as this level holds, downtrend will continue.


USDJPY Analysis.
After touching 84.40 previous high, USDJPY pulled back from 84.49 level. Another fall to 83.00-83.50 area to reach next cycle bottom on 4-hour chart would likely be seen. Resistance is at 84.49, only break above this level could signal resumption of uptrend, then next target would be at 86.00 zone.


USDCAD Analysis.
USDCAD broke above 1.0140 resistance. Further rally is now in favor and next target would be at 1.0200 area. Support is at 1.0090, only break below this level could trigger another fall to re-test 0.9977 support.