Short Term Analysis - December 12, 2006

GBPUSD

20061212_gbpusd_1.gifGBPUSD rebound from 1.9463, slightly above 38.2% retracement of 1.8834 to 1.9046. The pair may be bottoming on 4 hours chart, key resistance is at 1.9728, and a break above this level may confirm the cycle bottom.

USDJPY

20061212_usdjpy_1.gifUSDJPY broke above the price channel and pulled back immediately. The pair may be topping at 117.24 on 4 hours chart, key support is at 115.50, a break below this level may confirm the cycle top.

USDCHF

20061212_usdchf_1.gifUSDCHF declined from 1.2097, slightly below the previous high resistance at 1.2115. The pair may be topping on 4 hours chart. Key support is at 1.1910, a break below this level may confirm the cycle top.

AUDUSD

20061212_audusd_1.gifAUDUSD rebound from 0.7812, slightly above 38.2% retracement of 0.7613 to 0.7929. The pair may be bottoming on 4 hours chart, key resistance is at 0.7900, and a break above this level may confirm the cycle bottom.

USDCAD

20061212_usdcad_1.gifNo change in our view, USDCAD is in up trend, further rise towards 1.1600 is possible in the next several days. Near term support is at the up trend line, and as long as the trend line support holds, up trend will continue.

EURUSD

20061212_eurusd_1.gifEURUSD rebound from 1.3129, slightly below the previous low support at 1.3131. The pair may be bottoming on 4 hours chart, key resistance is at 1.3300, and a break above this level may confirm the cycle bottom.

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