Daily Forex Analysis – May 6, 2008

20080506_usdcad_1.gifUSDCAD Analysis.
USDCAD traded in a range between 0.9987 (Apr 17 low) and 1.0326 (Apr 1 high). Fall below 0.9987 is still in favor. Key resistance is located at 1.0326, a break of this level will signal resumption of the long term up trend.

20080506_audusd_1.gifAUDUSD Analysis.
AUDUSD rebounded sharply from 0.9275 and formed a short term cycle bottom. Further rise to test 0.9541 previous high resistance is still possible in a couple of days, and a break of this level will signal the resumption of the long term up trend.

20080506_eurusd_1.gifEURUSD Analysis.
Being contained by the previous low support at 1.5342 (Mar 24 low), EURUSD rebounded from 1.5360. Further rise to test 1.5643 is possible in a couple of days. As long as 1.5643 resistance holds, we’d expect down trend to resume, and fall towards 1.5000 area is in favor after consolidation.

20080506_usdchf_1.gifUSDCHF Analysis.
USDCHF formed a short term cycle top at 1.0606 on 4-hour chart. Pullback to 1.0400 area to reach the next cycle bottom is possible in a couple of days. As long as 1.0298 support holds, we’d expect up trend to resume and further rise to 1.0800 area is in favor after consolidation.

20080506_gbpusd_1.gifGBPUSD Analysis.
GBPUSD traded in range between 1.9599 (Apr 15 low) and 2.0029 (Apr 21 high) for 3 weeks. Break above this range to reach the next short term cycle top on 4-hour chart is now in favor. Initial support is located at 1.9599, a break of this level will turn price back to 1.9400 area.

20080506_usdjpy_1.gifUSDJPY Analysis.
USDJPY is forming a short term cycle top at 105.70 on 4-hour chart. Pullback to test the up trend line support is possible in a couple of days. As long as the trend line support holds, we’d expected uptrend to resume and further rise to 107.00 area is still in favor after consolidation.

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