Daily Forex Analysis – May 12, 2008

GBPUSD Analysis.
GBPUSD is in down trend. Further fall to test 1.9337 (Jan 22 low) long term key support is possible in a couple of days. Initial resistance is at 1.9621, as long as this resistance holds, down trend will continue.

USDJPY Analysis.
USDJPY is moving to the next short term cycle bottom on 4-hour chart. Deeper decline to 102.00 area is still possible later today. Key resistance is at 104.50, a break of this level will confirm the cycle bottom and rise to 108.00 area is expected to follow.

EURUSD Analysis.
EURUSD formed a short term cycle bottom at 1.5284 on 4-hour chart. Further rise to test 1.5594 resistance is possible in a couple of days, and a break of this level will indicate that the down trend from 1.6019 has completed.

USDCAD Analysis.
USDCAD stays in range between 0.9987 and 1.0242. Break below 0.9987 is still in favor after consolidation. Key resistance is located at 1.0326, a break of this level will signal resumption of the long term up trend.

AUDUSD Analysis.
AUDUSD is forming a sideways consolidation in a range between 0.9275 and 0.9541 (Apr 23 high). Fall to retest 0.9275 support will more likely be seen. Only rise above the key resistance at 0.9541 will signal resumption of the long term up trend.

USDCHF Analysis.
USDCHF broke below 1.0425 support and reach as low as 1.0388. Deeper decline to test 1.0298 is expected in a couple of days, a break of this level will indicate that the up trend from 0.9995 has completed.

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