Daily Forex Analysis – December 9, 2009

AUDUSD Analysis.
AUDUSD’s fall from 0.9321 extends to as low as 0.9014. Deeper decline is still in favor and next target is to test 0.8916 previous low support, and rebound would more likely be seen before breaking below this level, however, below this level will suggest that the uptrend from 0.7703 (July 13 low) has completed at 0.9404 level already. Resistance is now at 0.9120, as long as this level holds, downtrend will continue.

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USDCHF Analysis.
USDCHF’s uptrend from 0.9917 extends to as high as 1.0290. As long as 1.0136 support holds, we’d expect uptrend to continue and further rally to test 1.0338 resistance is possible later today, however, next short term cycle top is nearing, consolidation would more likely be seen before breaking above this level.

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EURUSD Analysis.
EURUSD continues its downward trend from 1.5144 and the fall extends further to as low as 1.4668 level. Deeper decline is still possible later today and target is to test 1.4626 key support, a breakdown below this level will indicate that the longer term uptrend from 1.3748 (June 16 low) has completed at 1.5144 already. However, next short term cycle bottom is nearing, consolidation would more likely be seen before breaking below 1.4626 level.

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GBPUSD Analysis.
GBPUSD breaks below 1.6271 previous low. Further fall is still in favor and next target would be at 1.6000 area. Resistance is now at 1.6370, as long as this level holds, downtrend from 1.6721 could be expected to continue.

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USDJPY Analysis.
USDJPY has formed a short term cycle top at 90.76 level on 4-hour chart. Range trading between 87.80 and 90.76 is expected in next several days. However, the fall from 90.76 is treated as consolidation of uptrend from 84.82, another rise towards 91.50-92.00 area is still possible after consolidation.

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USDCAD Analysis.
No changed in our view, USDCAD stays in a trading range between 1.0405 and 1.0748. Lengthier consolidation in range is still possible in a couple of day. Another fall towards 1.0206 (Oct 15 low) previous low would more likely be seen after consolidation and a breakdown below 1.0405 will confirm resumption of downtrend.

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