Short Term Analysis – October 5, 2006

USDJPY

20061005_usdjpy_1.gifUSDJPY is in correction to the up trend, fall below 117.38 to reach the next cycle bottom on 4 hours chart is still possible later today. Key resistance is at 118.39, a break above this level may signal the resumption of the up trend.

USDCAD

20061005_usdcad_1.gifUSDCAD broke above the previous high resistance at 1.1294 and is topping on 4 hours chart. It will form a sideways consolidation before the resumption of the up trend. Near term support is the up trend line, now at 1.1190, key support is at 1.1144, only break below the key support may signal the reversal to the up trend.

EURUSD

20061005_eurusd_1.gifEURUSD is in correction to the up trend, further rise above 1.2764 level can be expected after this correction. Key support is now at 1.2668, only break below this level may signal the reversal to the up trend.

GBPUSD

20061005_gbpusd_1.gifGBPUSD is in up trend and further rise towards 1.9000 to reach the next cycle top is possible in the next couple of days. Near term support is at 1.8784, as long as this support holds, up trend will continue.

USDCHF

20061005_usdchf_1.gifUSDCHF is in correction to the down trend and further fall below 1.2404 level to reach the next cycle bottom is still possible in the next couple of days. Key resistance is now at 1.2543, only break above this level may signal the reversal to the down trend.

AUDUSD

20061005_audusd_1.gifAUDUSD is testing the down trend line resistance, break above this resistance may consider the reversal to the down trend, and breaking above the key resistance at 0.7494 is needed to confirm the cycle bottom. On the other side, if the down trend line resistance holds, the pair will fall below 0.7416 to reach the next cycle bottom.