USDCHF Analysis.
USDCHF traded in a narrow range between 0.9114 and 0.9249 for several days. The price action in the range could be treated as consolidation of downtrend from 0.9594. Key resistance is at 0.9350, as long as this level holds, downtrend could be expected to resume, and one more fall towards 0.8900 is still possible. However, a break above 0.9350 will indicate that the downward movement from 0.9594 had completed at 0.9114 already, then the following upward move could bring price back towards 0.9594 previous high.

EURUSD Analysis.
EURUSD is in correction of the uptrend from 1.2624. Pullback to 1.2800-1.2900 area to complete the correction would likely be seen over the next several days. Key resistance is at 1.3233, only break above this level could signal resumption of the uptrend.

AUDUSD Analysis.
AUDUSD stays in a upward price channel on 4-hour chart, and remains in uptrend from 1.0145, the fall from 1.0755 is treated as consolidation of uptrend. Initial support is at the lower line of the price channel on 4-hour chart, as long as the trend line support holds, uptrend could be expected to resume, and one more rise towards 1.0900 is still possible.

USDJPY Analysis.
USDJPY may be forming a cycle bottom at 76.02 on 4-hour chart, bounce to test 76.55 resistance would likely be seen later today, a break above this level will confirm the cycle bottom, then further rally could be seen to 76.90 area.

USDCAD Analysis.
USDCAD stays below a downward trend line on 4-hour chart and remains in downtrend from 1.0318. As long as the trend line resistance holds, downtrend could be expected to continue, and next target would be at 0.9900 area., only a clear break above the trend line could signal completion of the downtrend.

GBPUSD Analysis.
GBPUSD pulled back from 1.5882 and is now facing the support of the upward trend line on 4-hour chart, as long as the trend line support holds, the pullback is treated as consolidation of uptrend, and one more rise towards 1.6000 is still possible, only a clear break below the trend line could signal completion of the uptrend.

On Thursday Euro/Dollar decreased with 110 pips. The European currency depreciated from 1.3197 to 1.3084 yesterday, not matching the positive Interbank sentiment projection at almost +18%, closing the day at 1.3143. This morning the Euro is trading quietly, and within yesterday's range for now. On the 1 hour chart the upward channel is on hold, while on the 3 hour chart range trading is forming. Break above the nearest resistance and yesterday's top at 1.3197 may trigger further strengthening of the Euro. Going bellow yesterday's bottom and first support at 1.3084, however, would confirm continuation of the bearish trend, towards next objective downwards 1.2970. Today's focus is on Italy, France, Germany and EU17 PMI services, EU17 Retail sales, and Italy CPI and HICP, at 8:45, 8:50, 8:55, 9 and 10 GMT respectively. Quotes are moving in line with the 20 and bellow the 50 EMA on the 1 hour chart, indicating short term neutral and medium term slim bearish pressure. The value of the RSI indicator is negative and declining, MACD is neutral and calm, while CCI is in line with the 100 line on the 1 hour chart, giving overall all neutral to light short signals.
Technical resistance levels: 1.3197 1.3315 1.3453
Technical support levels: 1.3084 1.2970 1.2848

"[The euro] is probably going to retake the topside, but $1.34 is probably where it tops out"
- Westpac Banking Corp. (based on WSJ)
Despite pair’s recent determined advancement, EUR/USD is expected to remain capped be a key resistance line located at 1.3245/50.

"Risk appetite is fairly positive at the moment, and this could continue for a couple of weeks. Typical safehaven currencies have taken a step back now"
- Rochford Capital (based on Bloomberg)
A tough resistance area at 102.55/60 is unlikely to let EUR/JPY rally in the nearest future, pushing the pair down toward 99.00/98.90.

"If QE is 25 billion, sterling could stabilise and even rally. If it is 75 billion, sterling may come under pressure"
- UBS (based on Reuters)
En route to 1.6170/90 (200 week ma) the Cable is going to encounter an initial resistance at 1.5890 and a subsequent level at 1.5960 (200 day ma).

CHF
"We think there is a good chance that it [intervention] will happen if we drift slowly down towards 75.50 or maybe a little lower"
- UBS (based on CNBC)
Since USD/JPY has breached a support at 76.20, the pair may plummet down to 75.30 or 75.00, though it is rather stable for now.

JPY
"Markets are pricing in a more constructive outlook for global growth in 2012, so that’s the main factor behind dollar weakness and stronger risk appetite"
- Wells Fargo & Co. (based on Bloomberg)
In the short-term USD/CHF is likely to move sideways, supported by 0.9080/65.

The United States will release Non-Farm Payrolls (NFP) data on Friday, February 3^rd 2012. The market consensus is for the creation of 153K jobs in the month of January. Market expectations are cautious after the December report which showed that 200K jobs were added to the economy in the same month. In his testimony to Congress today, Fed Chairman Ben Bernanke said indicators of spending, production and labor markets have shown some signs of improvement. 

EUR/USD: Although gains in this market have been quite impressive in recent days, the price action is still classified as corrective with the market locked in a broader underlying downtrend. From here we would still leave the door open for additional upside to test the 100-Day SMA by 1.3355, but any additional gains should be well capped below 1.3500 on a daily close basis in favor of the formation of the next major lower top ahead of bearish resumption. Ultimately we see risks for a move back below the 2012 lows at 1.2620 and towards the 1.2000 area over the coming months.

USDCHF Analysis.
USDCHF stays in a downward price channel on 4-hour chart, and remains in downtrend from 0.9594, the price action in the range between 0.9114 and 0.9249 is treated as consolidation of downtrend. As long as the channel resistance holds, we’d expect downtrend to resume, and another fall towards 0.8900 is still possible. Key resistance is at 0.9350, only break above this level could signal completion of the downward movement.

EURUSD Analysis.
EURUSD has formed a cycle top at 1.3233 on 4-hour chart. Pullback to 1.2800-1.2900 area would likely be seen in a couple of days. Key resistance is at 1.3233, only break above this level could trigger another rise towards 1.3500.

AUDUSD Analysis.
AUDUSD stays in a upward price channel on 4-hour chart, and remains in uptrend from 1.0145. Further rise is still possible in a couple of days, and next target would be at 1.0800 area. Support is at the lower line of the price channel, as long as the channel support holds, uptrend will continue.

USDJPY Analysis.
USDJPY’s downward move from 78.28 extends to as low as 76.02. Further decline towards 75.57 (Oct 31, 2011 low) is still possible. Key resistance is at 76.75, a break above this level could signal completion of the downtrend.

USDCAD Analysis.
USDCAD remains in downtrend from 1.0318, and the fall extended to as low as 0.9963. Resistance remains in the downward tend line on 4-hour chart, as long as the trend line resistance holds, downtrend could be expected to continue, and next target would be at 0.9900.

GBPUSD Analysis.
GBPUSD stays above a upward trend line on 4-hour chart, and remains in uptrend from 1.5236. Further rise is still possible in a couple of days, and next target would be at 1.6000 area. Support is at the trend line, only a clear break below the trend line could signal completion of the uptrend.

On Wednesday Euro/Dollar increased significantly with 190 pips on signs of European debt solving. The European currency appreciated from 1.3024 to 1.3218 yesterday, not matching the positive Interbank sentiment projection at over +17%, closing the day at 1.3082. This morning the Euro is trading quietly, at the upper end of yesterday's range for now. On the 1 hour chart the upward channel is on hold, while on the 3 hour chart range trading is forming. Break above the nearest resistance and yesterday's top at 1.3218 may trigger further strengthening of the Euro. Going bellow yesterday's bottom and first support at 1.3024, however, would confirm continuation of the bearish trend, towards next objective downwards 1.3000. Today's focus is on EU17 PPI at 10 GMT. Quotes are moving just bellow the 20 and above the 50 EMA on the 1 hour chart, indicating short term slim bearish and medium term bullish pressure. The value of the RSI indicator is negative and declining, MACD is positive and calm, while CCI has thinly crossed down the 100 line on the 1 hour chart, giving overall all light short signals.
Technical resistance levels: 1.3218 1.3330 1.3453
Technical support levels: 1.3024 1.3000 1.2883

"The merger between Deutsche Boerse and NYSE Euronext would have led to a near-monopoly in European financial derivatives worldwide"
- Joaquin Almunia, competition commissioner
The European Commission has blocked a 9 billion dollar merger between Deutsche Börse and NYSE Euronext stock exchanges, saying that it would have stifled competition and created a monopoly in derivatives trading.

"The job market continues to grow at a moderate pace"
- Jonathan Basile, senior economist at Credit Suisse in New York
The number of Americans who have found a job in the private sector in January declined to 170 thousand from a revised 292 thousand the prior month, the ADP Employer Services said on Wednesday.

"The UK manufacturing sector has sprung to life in the first month of 2012 to defy any economic gloom"
- David Noble, chief executive at Cips
U.K. manufacturing sector expanded in January, said Markit on Wednesday. The manufacturing purchasing managers' index rose to 52.1 from 49.7 in December. A reading above 50 signals expansion.

CHF
"Political leaders are in agreement on budget controls, but there isn’t a lot that has changed"
- Guillaume Chaloin, a fund manager at Meeschaert Asset Management
Swiss stocks jumped on Wednesday after a report showed U.S. manufacturing expanded in January.

JPY
"A certain amount of money is flowing into Japanese stocks because they are relatively undervalued in terms of price-book ratios among global markets"
- Kazuyuki Terao, chief investment officer of RCM Japan Co.
Japanese stocks edged higher on Wednesday, led by Nippon Airways and Mitsui O.S.K. Lines Ltd. The Nikkei 225 rose 0.08%, or 7.28 points, to 8,809.79, while the broader Topix advanced 0.36%, or 2.69, to 757.96.

USDCHF Analysis.
USDCHF breaks above the downward trend line on 4-hour chart, suggesting that a cycle bottom has been formed at 0.9114. Further rally would likely be seen later today, and the target would be at 0.9300 area. Key resistance is at 0.9350, as long as this level holds, the bounce from 0.9114 is treated as consolidation of downtrend from 0.9594, and another fall towards 0.8900 is still possible after consolidation. On the upside, a break above 0.9350 will indicate that the downtrend has completed at 0.9114 already, then further rise towards 0.9594 previous high could be seen.

EURUSD Analysis.
EURUSD breaks below 1.3077 support, suggesting that a cycle top has been formed at 1.3233 on 4-hour chart, and the uptrend from 1.2624 has completed. Further decline would likely be seen in a couple of days, and the target would be at 1.2800-1.2900 area. Key resistance is at 1.3233, only break above this level could trigger another rise towards 1.3500.

AUDUSD Analysis.
AUDUSD moved sideways in a range between 1.0526 and 1.0687 for several days. The price action in the range is treated as consolidation of uptrend from 1.0145. Key support is at 1.0526, as long as this level holds, we’d expect uptrend to resume, and another rise towards 1.0900 is still possible after consolidation. However, a breakdown below 1.0526 will indicate that a cycle top has been formed at 1.0687 on 4-hour chart, then the pair will find support around 1.0450.

USDJPY Analysis.
USDJPY’s downward move from 78.28 extends to as low as 76.14. Further decline would likely be seen later today, and the target would be at 76.00 area. Resistance is at 76.75, only break above this level could signal completion of the downtrend from 78.28.

USDCAD Analysis.
USDCAD’s downward movement from 1.0318 extended to as low as 0.9965. Resistance remains at the downward trend line on 4-hour chart, as long as the trend line resistance holds, downtrend could be expected to continue, and further fall towards 0.9900 is possible, only a clear break above the trend line could indicate that a cycle bottom has been formed at 0.9965.

GBPUSD Analysis.
GBPUSD’s upward movement extends to as high as 1.5795. Further rise is still possible after a minor consolidation and next target would be at 1.5850 area. Initial support is at the upward trend line on 4-hour chart, and the key support is at 1.5640, only break below this level could signal completion of the uptrend.

On Tuesday Pound/Dollar resumed increasing with almost 100 pips. The Cable appreciated from 1.5699 to 1.5797 yesterday, in line with the positive Interbank sentiment at above +54%, closing the day at 1.5758. Today the British Pound is correcting downwards, with movements at the lower end of yesterday's range for the time being. On the 1 hour chart the upward channel looks good, while on the 3 hour chart quotes are testing the upper limit of the wide trading range. First resistance is yesterday's peak at 1.5797. Break above it should extend the bullish movement further towards 1.5924. The nearest support level is yesterday's bottom at 1.5699. Going bellow it should extend British Pound's reduction further down towards next downward objective 1.5579. Today are UK Nationwide house price and CIPS manufacturing indexes, at 7 and 9:30 GMT respectively. Quotes are moving bellow the 20 and above the 50 EMA on the 1 hour chart, indicating short term bearish and medium term bullish pressure. The value of the RSI indicator is negative and hesitant, MACD is neutral and declining, while CCI has crossed down the 100 line on the 1 hour chart, giving over all light short signals.
Technical resistance levels: 1.5797 1.5924 1.6060
Technical support levels: 1.5699 1.5579 1.5443

"The debt swap agreement is ready, but it will not be announced before the end of the week"
- A senior Greek banker
The leaders of 25 European Union member countries Monday signed a German-inspired pact for stricter budget discipline which will impose sanctions on countries that run excessive deficits and rack up unsustainable debts.

"Consumer confidence appears to have leveled off, as job growth isn’t quite as good and gasoline prices have moved back up"
- Stuart Hoffman, chief economist at PNC Financial Services Group Inc.
U.S. consumer confidence declined in January as consumers became less optimistic on the outlook of the country’s economy, the Conference Board Inc. said on Tuesday. An index of sentiment decreased to 61.1 from a revised 64.28 reading.

"Consumer confidence is still seriously depressed and we should treat this month’s modest improvement with caution"
- Nick Moon, GfK Social Research managing director
U.K. consumer confidence rose to seven-month high in January as consumers became more optimistic on the outlook of the country’s economy, estimated GfK NOP Ltd. An index of sentiment rose to -29 from -33 in December.

CHF
"Political leaders are in agreement on budget controls, but there isn’t a lot that has changed"
- Swiss stocks closed mixed on Tuesday amid scepticism Greece is unable to tackle with spending cuts and labour reform effectively
Guillaume Chaloin, a fund manager at Meeschaert Asset Management.

JPY
"Manufacturers have become cautious about hiring people in the context of global growth"
- Kiichi Murashima, chief economist at Citigroup Global Markets Japan Inc.
Japan’s industrial output soared 4 per cent in December, the Ministry of Economy, Trade and Industry reported on Tuesday, a sign the economy is gaining steam after flooding in Thailand and devastating earthquake the last year.

Chinese data showed that manufacturing has struggled in January. The Chinese PMI printed at 50.5 in January. This showed that manufacturing activity neither expanded nor contracted in January. Economists expect that Chinese policy makers are unlikely to react as the PMI reading does not show contraction. HSBC sounded more downbeat and said that the January data showed declining output. With inflation no longer a concern, markets are anxiously waiting for the People’s Bank of China to ease monetary policy.

EURUSD Analysis.
After testing the support of the upward trend line on 4-hour chart, EURUSD rebounded from 1.3077. The bounce would possibly be resumption of uptrend from 1.2624, further rise is expected later today, and next target would be at 1.3300 area. On the other side, a breakdown below 1.3077 will suggest that a cycle top has been formed at 1.3233 on 4-hour chart, then pullback towards 1.2800-1.2900 area could be seen.

AUDUSD Analysis.
AUDUSD is in uptrend from 1.0145, the price action from 1.0687 is treated as consolidation of uptrend. Another rise towards 1.0900 could be expected after consolidation, and a break above 1.0687 will signal resumption of the uptrend. Key support is now at 1.0526, only break below this level could indicate that the rise from 1.0145 is complete.

USDCHF Analysis.
USDCHF stays below a downward trend line on 4-hour chart, and remains in downtrend. As long as the trend line resistance holds, downtrend could be expected to continue, and next target would be at 0.9000 area.

USDJPY Analysis.
USDJPY broke below 76.55 support and reached as low as 76.21. Further decline would likely be seen after a minor consolidation, and the target would be at 76.00 area. Resistance is now at 76.75, only break above this level could signal completion of the downtrend from 78.28.

USDCAD Analysis.
USDCAD stays below a downward trend line on 4-hour chart, and remains in downtrend from 1.0318, the price action from 0.9981 is treated as consolidation of downtrend. Resistance is at the downward trend line, as long as the trend line resistance holds, downtrend could be expected to resume, and another fall towards 0.9900 is still possible.

GBPUSD Analysis.
GBPUSD remains in uptrend from 1.5236. Further rise would likely be seen later today, and next target would be at 1.5800 area. Key support is now at 1.5640, only break below this level could signal completion of the uptrend.

"[Confidence] figures seem to indicate that the euro zone recession is bottoming out"
- Peter Vanden Houte, an economist at ING Group in Brussels
Euro-area economic confidence improved less than expected in January as the region’s economy is moving toward a recession despite leaders’ efforts to revive growth.

"Despite the healthy gains in income, U.S. consumers appear to have rediscovered a new sense of frugality"
- Millan Mulraine, an economist at TD Securities
U.S. consumer spending stalled in December said Bureau of Economic Analysis on Monday, a sign consumers attempt to restore depleted savings.

"Housing market is dogged by uncertainty"
- Richard Donnell, director of research at Hometrack
U.K. month-on-month house prices remained unchanged in January, after falling 0.2 per cent in November and December, estimated the property researcher Hometrack Ltd. Values fell 1.6 per cent from January 2011.

CHF
"Market participants are somehow realizing again that the Greek problem is far from over"
- Stephane Ekolo, chief European strategist at Market Securities
Swiss stocks lost ground on Monday after Greece and private bondholders failed to finalize a debt swap agreement the previous week.

JPY
"Stocks have been rising since the middle of this month and now investors may want to sell to lock in profit"
- Kiyoshi Ishigane a Tokyo-based strategist at Mitsubishi UFJ Asset Management Co.
Japanese stocks fell on Monday after the U.S. economy expanded less than expected, a worrying sign for Asian exporters. The Nikkei 225 declined 0.54%, or 48.17 points, to 8,793.05, while the broader Topix shed 0.54%, or 4.12, to 757.01.

On Monday Dollar/Yen continued decreasing with 55 pips. The currency couple depreciated from 76.78 to 76.21 yesterday, not matching the positive Interbank sentiment at bellow +18%, closing the day at 76.33. This morning the Dollar weakened slightly further against the Yen, reaching 76.17. On the 1 hour chart new downward channel is emerging, while on the 3 hour chart quotes are testing the lower limit of the trading range. Break above yesterday's top and nearest resistance 76.78 would encourage further recovery of the Dollar. Immediate support is today's bottom at 76.17, and consistent break bellow it could strengthen the Yen further down towards next target 75.30. Today are Japan Housing starts and Construction orders, both at 5 and 7:45 GMT. Quotes are moving just above the 20 and bellow the 50 EMA on the 1 hour chart, indicating short term slim bullish and medium term bearish pressure. The value of the RSI indicator is neutral and calm, MACD is negative and tranquil, while CCI is in line with the 100 line on the 1 hour chart, giving over all neutral signals.
Technical resistance levels: 76.78 77.65 78.49
Technical support levels: 76.17 75.30 74.39

Putting a little pressure on the Euro yesterday was news that Portuguese bond yields touched on record highs, suggesting to investors that Portugal is quickly becoming the new Greece. However, that pressure was brief as the Euro-Dollar is currently trading higher at 1.3185. Current support is being attributed to the developing news story that Germany may now get their coveted “fiscal pact.”

Japan reported that industrial production rose 4.0% in December. This was much better than analyst expectations of a rise of 2.8%. This follows a 2.7% drop in November and is a positive sign for the Japanese economy. Japanese manufacturers have been struggling to get production back to pre-earthquake levels. The 2011 March earthquake devastated supply chains for the nations industries. Also, Japanese household spending rose 0.5% in December. On the downside, the unemployment rate ticked higher to 4.6% in December from 4.5% in November. This was worse than analyst expectations who had expected the unemployment rate to stay at 4.5%.

AUDUSD Analysis.
Being contained by the upper line of the price channel on 4-hour chart, AUDUSD pulled back from 1.0687, suggesting that a cycle top is being formed. Deeper decline towards the lower line of the channel would likely be seen in a couple of days. As long as the channel support holds, the fall could be treated as consolidation of uptrend from 0.9861, another rise towards 1.0900 is still possible after consolidation, and a break above 1.0687 will signal resumption of uptrend.

USDCHF Analysis.
USDCHF continued its downward movement last Friday, and the fall extended to as low as 0.9114. Resistance remains at the downward trend line on 4-hour chart, as long as the trend line resistance holds, downtrend could be expected to continue after a minor consolidation, and next target would be at 0.9000 area, only a clear break above the trend line could indicate that lengthier consolidation of downtrend is underway.

USDJPY Analysis.
USDJPY’s downward movement had extended to as low as 76.64, and the pair is now facing 76.55 support, below this level will target 76.00 area. Resistance is at 77.00, only break above this level could indicate that a cycle bottom is being formed on 4-hour chart.

EURUSD Analysis.
EURUSD stays above a upward trend line on 4-hour chart, and remains in uptrend from 1.2624, and the rise extended to as high as 1.3233. Further rise is still possible after a minor consolidation, and next target would be at 1.3300 area, only a clear break below the trend line could signal completion of the uptrend.

USDCAD Analysis.
USDCAD remains in downtrend from 1.0318, the price action from 0.9981 is treated as consolidation of downtrend. Resistance is at the downward trend line of 4-hour chart, as long as the trend line resistance holds, downtrend could be expected to resume, and another fall towards 0.9900 is still possible.

GBPUSD Analysis.
GBPUSD’s upward movement from 1.5236 extended to as low as 1.5739. Support is located at the upward trend line on 4-hour chart, as long as the trend line support holds, uptrend could be expected to continue, and next target would be at 1.5800 area, only a clear break below the trend line could signal completion of the uptrend.

"[Unemployment] is the main source of vulnerability of the Spanish economy"
- Luis de Guindos, Economy Minister
Spain’s unemployment increased to 22.8 per cent in the last three months of 2011 from 21.5 per cent the previous quarter and surpassed five million mark, said the National Statistics Institute on Friday.

"The economy ended 2011 on a fairly positive note"
- Ryan Sweet, a senior economist at Moody's Analytics
The U.S. gross domestic product rose 2.8 per cent in the last three months of 2011, less then expected, the Bureau of Economic Analysis said on Friday.

"We’re still cautious on the outlook for equities at present"
- Sally Davies, a fund manager at Octopus Investments
U.K. stocks edged lower on Friday as the world’s largest economy grew less than expected and uncertainty remained over a debt-swap agreement between the Greece and private bondholders.

CHF
"Market participants are somehow realizing again that the Greek problem is far from over"
- Stephane Ekolo, chief European strategist at Market Securities
The KOF economic barometer, which indicates the expected performance of the Swiss economy over the following six months, declined to -0.17 January from 0.01 in December, the lowest level since July 2009.

JPY
"Consumers are gradually regaining their appetite"
- Yoshimasa Maruyama, chief economist at Itochu Corp.
Japan’s year-on-year retail sales rose 2.5 per cent in December, said the Ministry of Economy, Trade and Industry on Friday, the biggest gain since August 2010.

On Friday Dollar/Yen continued decreasing with 90 pips. The currency couple depreciated from 77.48 to 76.60 on Friday, matching the negative Interbank sentiment at bellow -15%, closing the week at 76.64. This morning the Dollar weakened is trading quietly against the Yen, at the lower end of Friday's range for now. On the 1 hour chart sharp wedge has formed, while on the 3 hour chart wide range trading has formed. Break above Friday's top and nearest resistance 77.48 would encourage further recovery of the Dollar. Immediate support is Friday's bottom at 76.60, and consistent break bellow it could strengthen the Yen further down towards next target 75.77. Today are Japan Unemployment, Household spending, and Industrial output, at 23:30 and 23:50 GMT respectively. Quotes are moving in line with the 20 and bellow the 50 EMA on the 1 hour chart, indicating short term neutral and medium term bearish pressure. The value of the RSI indicator is neutral and calm, MACD is negative and tranquil, while CCI is in line with the 100 line on the 1 hour chart, giving over all neutral signals.
Technical resistance levels: 77.48 78.34 79.20
Technical support levels: 76.60 75.77 74.90

As Davos wraps up and the E.U. economic summit gets under way, news out of the Eurozone this past weekend looks to set the course for a rocky trading week for the common currency. Greece, again, is at the forefront of the news on two separate fronts. First, the Greek government and its private bondholders appear closer to a deal which would see the creditors take a haircut of more than 70% and exchange maturing bonds with a coupon rate considerably below 4%, which they previously insisted would be their limit.

Slightly removed from the spotlight given the overwhelming focus on Greece, it’s easy to forget that there are other E.U. members which are also fiscally impaired. Earlier today, The Spanish National Statistics Institute reported that according to preliminary estimates, the Spanish economy contracted by 0.3% in the last quarter of 2011, in line with last week’s forecasts from the Bank of Spain. Analysts say the figures clearly suggest that the Eurozone’s 4th largest economy is headed for another recession, despite being the last of its Eurozone peers to emerge from the most recent recession.

USDCHF Analysis.
USDCHF’s downward movement from 0.9594 extended to as low as 0.9156. Resistance is now at the downward trend line on 4-hour chart, as long as the trend line resistance holds, downtrend could be expected to continue, and next target would be at 0.9050 area. On the upside, a clear break above the trend line will indicate that a cycle bottom is being formed on 4-hour chart, then consolidation of downtrend could be seen to follow.

USDJPY Analysis.
After touching the 78.27 (Nov 29, 2011 high) resistance, USDJPY pulled back from 78.28, suggesting that a cycle top has been formed on 4-hour chart. However, the fall would possibly be correction of uptrend from 76.55, another rise towards 79.52 is still possible after correction.

AUDUSD Analysis.
AUDUSD’s upward movement from 0.9861 extended to as high as 1.0687. Further rise is still possible after a minor consolidation, and next target would be at 1.0750 area. Support is at 1.0500, as long as this level holds, uptrend could be expected to continue, however, a breakdown below this level will indicate that a cycle top has been formed on 4-hour, then the pair will find support around the lower border of the price channel.

EURUSD Analysis.
EURUSD remains in uptrend from 1.2624, and the rise extended to as high as 1.3183. Support is now at the upward trend line on 4-hour chart, as long as the trend line support holds, uptrend will continue, and next target would be at 1.3300 area, only a clear break below the trend line could indicate that the uptrend is complete.

USDCAD Analysis.
USDCAD’s downward movement from 1.0318 extended to as low as 0.9981. Resistance is now at the downward trend line on 4-hour chart, as long s the trend line resistance holds, downtrend will continue, and next target would be at 0.9900 area, only a clear break above the trend line could signal completion of the downtrend.

GBPUSD Analysis.
GBPUSD stays above a upward trend line on 4-hour chart, and remains in uptrend from 1.5236. As long as the trend line support holds, uptrend could be expected to continue, and next target would be at 1.5800 area, only a clear break below the trend line could signal completion of the uptrend.