Daily Forex Analysis – December 21, 2011

USDCHF Analysis.
USDCHF is facing the support of the lower line of the price channel on 4-hour chart, a clear break below the channel support will suggest that the uptrend from 0.8569 has completed at 0.9546 already, then pullback towards 0.8700-0.8800 area could be seen. On the upside, as long as the channel support holds, the fall from 0.9546 is treated as consolidation of uptrend, and another rise towards 1.0000 is still possible.


AUDUSD Analysis.
AUDUSD broke above the downward price channel on 4-hour chart, suggesting that a cycle bottom has been formed at 0.9861. Further rally could be expected, and the target would be at 1.0200 area. Support is now at 0.9990, only break below this level could indicate that the rise from 0.9861 is complete.


USDCAD Analysis.
USDCAD broke below 1.0297 support, suggesting that lengthier consolidation of uptrend from 1.0051 is underway. Deeper decline is expected in a couple of days, and target would be at 1.0100-1.0200 area.


GBPUSD Analysis.
GBPUSD’s bounce from 1.5409 extended to as high as 1.5700. Further rally is still possible later today, and target would be at the upper border of the price channel on 4-hour chart. Key resistance is at 1.5779, as long as this level holds, the price action from 1.5423 is treated as consolidation of downtrend from 1.6164, and another fall towards 1.5272 (Oct 6 low) is still possible after consolidation.


EURUSD Analysis.
EURUSD is in consolidation of the longer term downtrend from 1.4246 (Oct 27 high). Further rally could be expected in a couple of days, and target would be at the downward trend line on 4-hour chart.


USDJPY Analysis.
USDJPY moved sideways in a range between 77.60 and 78.14. One more rise to test 78.27 key resistance is still possible, a break above this level will signal resumption of uptrend from 76.56, then further rise to 79.00 area could be seen. Support is at 77.60, below this level could bring price back to 76.50 zone.