Daily Forex Analysis – December 28, 2010

AUDUSD Analysis.
AUDUSD’s upward movement from 0.9830 extends further to as high as 1.0079 level. As long as 0.9987 support holds, uptrend is expected to continue and next target would be at 1.0110 area. On the downside, below 0.9987 will indicate that a cycle top has been formed on 4-hour chart, and the rise from 0.9830 has completed, then the following bearish movement could bring price back to 0.9600-0.9700 area.


USDCHF Analysis.
USDCHF is forming a cycle bottom at 0.9497 level on 4-hour chart. Key resistance is now at 0.9663, a break above this level will confirm the cycle bottom, then further rally towards 0.9733 resistance could be seen. However, the pair stays in a falling price channel, as long as 0.9663 resistance holds, one more fall towards 0.9463 (Oct 14 low) support is still possible.


USDJPY Analysis.
USDJPY continues its downward move from 84.49. Deeper decline towards 82.34 support is still possible later today. Key resistance is located at 83.40, only break above this level could indicate that the fall is complete.


EURUSD Analysis.
As expected, EURUSD formed a cycle bottom at 1.3055 level on 4-hour chart. Now the bounce from 1.3055 is treated as correction of downtrend from 1.3497, range trading between 1.3300 and 1.3055 would likely be seen.


GBPUSD Analysis.
GBPUSD has formed a cycle bottom at 1.5356 level on 4-hour chart. The bounce from 1.5356 is treated as consolidation of downtrend from 1.5910, as long as 1.5575 key resistance holds, another fall to test  1.5296 (Sep 7 low) long term key support is still possible, a break below this level will confirm that the long term uptrend from 1.4230 (May 20 low) is complete.


USDCAD Analysis.
USDCAD remains in downward movement from 1.0207. Deeper decline towards 0.9977 previous low is still possible later today, however, rebound would more likely be seen before breaking below this level.