Short Term Analysis – August 25, 2006

GBPUSD

20060825_gbpusd_1.gifGBPUSD traded in a range between 1.8774 and 1.9023 for about 15 business days. Break out this range is needed now. Key resistance is now at 1.8994, breaking above this level may signal the resumption of the up trend, the target would be above 1.9142. On the other side, near term support is at 1.8774, if this support gives way, the pair would fall towards 1.8700 level.

USDCHF

20060825_usdchf_1.gifUSDCHF is in up trend, further rise towards 1.2444 previous high resistance to reach the next cycle top is possible later today. Key support is at 1.2292 level, a break below this level may label the cycle top.

EURUSD

20060825_eurusd_1.gifEURUSD rebounded to 1.2841 and limited by the key resistance at 1.2851 yesterday. Further fall towards 1.2695 previous low support to reach the next cycle bottom is possible later today. Key resistance is still at 1.2851, as long as this resistance holds, down trend will continue.

USDCAD

20060825_usdcad_1.gifUSDCAD is in down trend, and the end of this down trend is nearing. We don’t suggest to take short positions at this moment.

USDJPY

20060825_usdjpy_1.gifUSDJPY is in up trend and further rise above 116.83 will be seen by the end of this cycle. Key support is now at 116.09, and as long as this support holds, up trend will continue.

AUDUSD

20060825_audusd_1.gifAUDUSD is forming a sideways consolidation and further fall bellow 0.7562 level will be expected later today. Key resistance is at 0.7668, only rise above this level may signal the resumption of the up trend.