Short Term Analysis – December 8, 2006

USDJPY

20061208_usdjpy_1.gifUSDJPY is testing the resistance of the down trend line. The pair may be bottoming at 114.41 on 4 hours chart, key resistance is now at 115.36, a break above this level may confirm the cycle bottom, and further rise towards 116.00 to reach the next cycle top can be expected.

AUDUSD

20061208_audusd_1.gifAUDUSD is forming a sideways consolidation in a range between 0.7820 and 0.7925, up trend will resume after this consolidation. Key resistance is at 0.7925, a break above this level may signal the resumption of the up trend.

USDCAD

20061208_usdcad_1.gifPrevious high resistance at 1.1492 is broken above, USDCAD is now in up trend. Further rise towards 1.1600 is possible in the next several days. Key support is at 1.1375, only break below this level may signal the reversal to the up trend.

GBPUSD

20061208_gbpusd_1.gifGBPUSD is in correction to the up trend, further fall towards 1.9550 level is still possible later today. Key resistance is at 1.9846, a break above this level may signal the resumption of the up trend.

EURUSD

20061208_eurusd_1.gifEURUSD is forming a sideways consolidation in a range between 1.3219 and 1.3362, up trend will resume after this consolidation. Key resistance is at 1.3362, a break above this level may signal the resumption of the up trend.

USDCHF

20061208_usdchf_1.gifUSDCHF is in correction to the down trend, further rise above near term resistance at 1.2007 is possible later today. Key resistance is at 1.2115, only break above this level may signal the reversal to the down trend.