Daily Forex Analysis – December 6, 2011

USDCHF Analysis.
USDCHF moved sideways in a range between 0.9066 and 0.9329. As long as 0.9066 key support holds, the price action in the range could be treated as consolidation of uptrend from 0.8569, and another rise towards 1.0000 is still possible. On the downside, a breakdown below 0.9066 will indicate the the rise from 0.8569 is complete, then the following downward movement could bring price back to 0.8400 area.

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EURUSD Analysis.
EURUSD had formed a cycle top at 1.3546 on 4-hour chart. Another fall to re-test 1.3146 (Oct 4 low) is expected. Key resistance is at 1.3546, only break above this level could indicate that the fall from 1.4246 is complete.

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AUDUSD Analysis.
AUDUSD broke below the upward trend line on 4-hour chart, suggesting that lengthier consolidation of uptrend is underway. Pullback to 1.0000 to reach next cycle bottom would likely be seen. Resistance is at 1.0327, only break above this level could signal resumption of uptrend.

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GBPUSD Analysis.
GBPUSD had formed a cycle top at 1.5779 on 4-hour chart. Another fall towards 1.5272 (Oct 6 low) would likely be seen in a couple of days. Key resistance is now at 1.5779, only break above this level could signal completion of the downtrend from 1.6164.

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USDCAD Analysis.
USDCAD is forming a cycle bottom at 1.0079 on 4-hour chart. However, the rise from 1.0079 is treated as consolidation of downtrend from 1.0523, another fall could be expected after consolidation.

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USDJPY Analysis.
USDJPY failed to break above 78.27 resistance and pulled back from 78.10. Lengthier consolidation in a range between 77.29 and 78.27 would likely be seen in a couple of days.

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