Short Term Analysis – May 16, 2007

gbpusd chartGBPUSD
GBPUSD broke above previous high resistance at 1.9846, lengthy consolidation can be expected, and further rise to the down trend line from 2.0073 to 1.9999 to reach the next cycle top on 4 hurs chart is still possible later today. Key support is at 1.9746, a break below this level will signal the resumption of the down trend.

eurusd chartEURUSD
EURUSD broke above the falling price channel resistance and reached as high as 1.3608. Further rise towards 1.3627 previous high to reach the next cycle top on 4 hours chart is still possible later today, and the next cycle top is nearing. Key support is at 1.3526, a break below this level will confirm the cycle top. Key resistance is at 1.3681, only break above this level will signal the resumption of the up trend.

audusd chartAUDUSD
AUDUSD is in sideways consolidation in a range between 0.8170 and 0.8392. Further rise towards 0.8392 previous high to reach the next cycle top on 4 hours chart is still possible later today, and the next cycle top is nearing. Key support is at 0.8302, a break below this level will confirm the cycle top.

usdchf chartUSDCHF
USDCHF broke below the up trend line support. Further fall towards 1.2079 to reach the next cycle bottom can be expected. However, the fall from 1.2223 is treated as correction to the up trend, and a break above 1.2223 level will signal the resumption of the up trend.

usdcad chartUSDCAD
USDCAD fall below previous low support at 1.1004 and down trend resumes. Further fall towards 1.0930 (2006 low) can be expected. Near term resistance is at 117.67, as long as this resistance holds, down trend will continue.

usdjpy chartUSDJPY
USDJPY broke above previous high resistance at 120.53. Further rise towards 121.50 can be expected. Near term support is at the up trend line from 117.59 to 119.46, and as long as the trend line support holds, up trend will continue.