Short Term Analysis – October 6, 2006

EURUSD

20061006_eurusd_1.gifEURUSD traded in a narrow range between 1.2639 and 1.2764, up trend will resume after breaking above the key resistance at 1.2764. On the other side, the key support is at 1.2668, if this support gives way, fall below 1.2630 to reach the next cycle bottom can be expected.

USDCHF

20061006_usdchf_1.gifKey resistance at 1.2543 is broken above, USDCHF will move higher to test the previous high resistance at 1.2556, if this resistance gives way, the pair will rise towards 1.2621 to reach the next cycle top. Key support is at 1.2477, a break below this level may signal the resumption to the down trend.

USDCAD

20061006_usdcad_1.gifUSDCAD is in up trend, the fall from 1.1304 is treated as in correction to the up trend, and further fall below the near term support at 1.1239 level to reach the next cycle bottom is possible in the next several days. Up trend will resume after breaking above the key resistance at 1.1304.

USDJPY

20061006_usdjpy_1.gifUSDJPY is forming a sideways consolidation in a range between 117.38 and 118.39, further rise above 118.39 is still possible after this consolidation, key resistance is now at 118.28, and a break above this level may signal the resumption of the up trend.

GBPUSD

20061006_gbpusd_1.gifGBPUSD is treated in correction to the up trend, further rise above 1.8897 is still possible in the next couple of days. Only break below 1.8631 level may signal the resumption of the down trend.

AUDUSD

20061006_audusd_1.gifThe falling trend line resistance is broken above, the pair is bottoming at 0.7416 on 4 hours chart, key resistance is now at 0.7475, and a break above this level may confirm the cycle bottom. Near tem support is at 0.7416, a break above this level may signal the resumption of the down trend.