Short Term Analysis – February 5, 2007

USDCHF

20070205_usdchf_1.gifUSDCHF failed to test the key support at 1.2374 and rebound from 1.2382. It will form a sideways consolidation in a range between 1.2374 and 1.2571. Key support is at 1.2374, break below this level indicate medium term bearish movement is underway, and fall towards 1.2100 level can be expected in the next several days. Key resistance is at 1.2571, only break above this level will signal the resumption of the up trend.

EURUSD

20070205_eurusd_1.gifEURUSD broke above 1.3042 and reached 1.3062 only, then pulled back and broke below the up trend line support. More volatility may be expected in the next several days. Near term support is at 1.2923 and followed by 1.2876, break below 1.2876 will signal the resumption of the down trend.

USDCAD

20070205_usdcad_1.gifKey resistance at 1.1849 is broken above, USDCAD is now in up trend. Further rise towards 1.1950 can be expected later today. Near term support is at 1.1735, only break below this level will signal the reversal to the up trend.

AUDUSD

20070205_audusd_1.gifNo change in our view, AUDUSD bottomed at 0.7695 on 4 hours chart, further rise towards 0.7800 level to reach the next cycle top can be expected in the next several days. Near term support is at 0.7695, only break below this level will signal the resumption of the down trend.

USDJPY

20070205_usdjpy_1.gifBeing contained by the down trend line resistance, USDJPY pulled back from 121.34, further fall below 120.07 is still possible later today. Near term resistance is at 121.34, key resistance is at 122.17, break above the key resistance will signal the resumption of the up trend.

GBPUSD

20070205_gbpusd_1.gifGBPUSD is in correction to the down trend, further rise towards 1.9800 is still possible later today. Key support is at 1.9480, a break below this level may signal the resumption of the down trend. Key resistance is at 1.9913, break above this level indicate another medium term bullish movement is underway, and further rise towards 2.0000 can be expected.