Daily Forex Analysis – January 2, 2012

USDCHF Analysis.
USDCHF stays above a upward trend line on 4-hour chart, and remains in uptrend from 0.9244, the fall from 0.9469 would possibly be consolidation of uptrend. Another rise to test 0.9546 is expected, a break above this level could signal resumption of the longer term uptrend from 0.8569 (Oct 27 low). Support remains at the uptrend line, only a clear break below the trend line could indicate that lengthier consolidation of uptrend is underway, then the pair will find support around 0.8850.


EURUSD Analysis.
EURUSD has formed a cycle bottom at 1.2858 on 4-hour chart, however, the rise is likely consolidation of downtrend, another fall is still possible after consolidation, and next target would be at 1.2500 area. Initial resistance is at 1.3050, only break above this level could trigger another rise to test 1.3196 key resistance.


AUDUSD Analysis.
After consolidation, AUDUSD broke above 1.0218 resistance, and reached as high as 1.0267. Further rise towards 1.0378 is still possible later today. As long as 1.0378 key resistance holds, the rise from 0.9861 is treated as correction of downtrend from 1.0378, downtrend is expected to resume before breaking above this level.


USDCAD Analysis.
USDCAD had formed a cycle bottom at 1.0125 on 4-hour chart. Further rally would likely be seen later today, and next target would be at 1.0350 area. Key resistance is now at 1.0267, a break above this level is needed to confirm the completion of the downtrend from 1.0422.


GBPUSD Analysis.
After breaking below 1.5409 support, GBPUSD rebounded from 1.5362, suggesting that a cycle bottom has been formed on 4-hour chart. Lengthier consolidation of downtrend from 1.6164 (Oct 31 high) would likely be seen over the next several days, and the trading range would be between 1.5362 and 1.5779.


USDJPY Analysis.
USDJPY’s downward movement from 78.21 extended to as low as 76.86. Further fall is still possible over the next several days, and next target would be at 76.00 area. Resistance is now at 77.40, only break above this level could signal completion of the downtrend.