Daily Forex Analysis – December 12, 2011

GBPUSD Analysis.
GBPUSD traded in a range between 1.5561 and 1.5779 for several days. One more fall to test 1.5423 support is still possible, a breakdown below this level could signal resumption of the downtrend from 1.6164. Key resistance is now located at 1.5779, above this level will confirm that the downtrend from 1.6164 had completed at 1.5423 already, then the following upward movement could bring price to 1.6500 area.


USDCHF Analysis.
USDCHF is facing 0.9329 resistance, a break above this level will signal resumption of uptrend from 0.8569, then further rise towards 1.0000 could be seen. On the other side, as long as 0.9329 resistance holds, another fall to test 0.9066 key support is still possible.


EURUSD Analysis.
EURUSD’s fall from 1.3546 extended to as low as 1.3281. Another fall towards 1.3212 is still possible later today. However, the fall is more likely correction of uptrend from 1.3212, as long as 1.3212 key support holds, we’d expect uptrend to resume, and a clear break above the upper line of the channel on 4-hour chart could signal completion of the downward move.


AUDUSD Analysis.
AUDUSD is now in downtrend from 1.0378, the rise from 1.0047 is treated as correction of downtrend. Another fall would likely be seen after correction and the target would be at 0.9900 area. Key resistance is at 1.0378, only break above this level could trigger another rise towards 1.0900.


USDCAD Analysis.
USDCAD may be forming a cycle top at 1.0261 on 4-hour chart. Range trading between 1.0051 and 1.0261 would likely be seen over the next several days. Key resistance is now at 1.0261, only break above this level could signal completion of the downtrend from 1.0523.


USDJPY Analysis.
USDJPY is in uptrend from 76.56, the fall from 78.27 is treated as consolidation of uptrend. Further rise to test 78.27 resistance would likely be seen in a couple of days, a break above this level could signal resumption of uptrend.