Being supported by 1.2706 previous low, EURUSD rebounds from 1.2720 level. More sideways consolidation in a range between 1.2706 and 1.3093 could be expected in next several days. The price action from 1.2764 (Jan 23 low) is more likely consolidation of the medium term downtrend from 1.4719 (Dec 18, 2008 high). Further fall is expected after the sideways consolidation, and a break below 1.2706 will signal deeper decline towards 1.2500 area.
Archive for February, 2009
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GBPUSD breaks below the support of the price channel on 4-hour chart, suggesting that a short term cycle top has been formed at 1.4985 level on 4-hour chart. Further fall is expected to test 1.2051 support, a break below this level will indicate that the downtrend from 2.0158 (July 15, 2008 high) has resumed, and deeper decline could be seen to 1.3000 zone.
USDCAD breaks above 1.2297 resistance and rebounds sharply to as high as 1.2493 level, suggesting that the pair is back to range trading between 1.2024 and 1.2765. Initial resistance is now at 1.2538, a break above this level will signal further rally to test 1.2765 previous high resistance. However, pullback would more likely be seen before breaking above 1.2538 level, and one more fall below 1.2024 to reach the next cycle bottom on daily chart is expected.
USDJPY traded in a narrow range between 90.72 and 92.40. As long as 90.72 support holds, we’d expect uptrend to resume, and further rally could be seen to test 94.61 (Jan 6 high) resistance. A break above this level will indicate that the fall from 110.66 (Aug 8, 2008 high) has completed, and the following medium term uptrend will take price to 102.00 area. However, below 90.72 level will signify that a short term cycle top has been formed at 92.40 level on 4-hour chart, and then lengthier consolidation of the short term uptrend could be seen to follow.
USDCHF remains in short term uptrend. The pullback from 1.1742 is treated as consolidation of the uptrend. Near term support is at 1.1399 and key support is at 1.1313. As long as 1.1399 support holds, we’d expect uptrend to resume, and further rally could be seen to 1.2000 zone in next several days. Only fall below 1.1313 will indicate that the medium term uptrend from 1.0366 (Dec 29,2008 low) has completed.
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USDJPY breaks out of the trading range between 87.98 and 90.74 and reaches as high as 92.23 level, suggesting that a short term cycle bottom has been formed at 88.58 on 4-hour chart. Further rise is still possible, and the next target would be at 94.00 zone. Initial support is now at 88.58, only fall below this level will take price back to retest 87.12 previous low support.
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EURUSD pulls back from 1.3069, and the fall could possibly be resumption of medium downtrend from 1.4719 (Dec 18, 2008 high). Further fall is now in favor, the next target would be at 1.2600 zone. However a break below 1.2706 is needed to confirm the resumption of the downtrend. Near term resistance is now at 1.3069, only rise above this level will signal further rally to test 1.3329 previous high resistance.
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