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Archive for May, 2009
USDJPY breaks above 96.69 resistance and reaches as high as 97.23 level. Consolidation in a range between 95.50 and 97.23 is expected in a couple of days, and further rally to 98.00 is possible after consolidation. Key support is now located at 95.50, below this level will indicate that a short term cycle top has been formed at 97.23 level on 4-hour chart, and the fall from 97.23 is treated as resumption of downtrend, then deeper decline could be seen to re-test 93.85 support.
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EURUSD’s pullback from 1.4050 extends further to as low as 1.3823 level. Deeper decline to test the support of the lower border of the price channel on 4-hour chart is expected in a couple of days. Rebound would more likely be seen after touching the lower border of the channel. However, a clear break below the channel support will take price to 1.3500 zone.
USDCHF breaks above the resistance of the falling trend line from 1.1263 to 1.1056, suggesting that a short term cycle bottom has been formed at 1.0812 level on 4-hour chart. Range trading between 1.0800 and 1.1050 is expected in a couple of days. However, the price action from 1.0812 is more likely consolidation of the downtrend from 1.1740 (Apr 20 high), further fall towards 1.0600 could be seen after consolidation.
USDCHF remains in downtrend from 1.1263 and the rebound from 1.0812 is more likely consolidation of the downtrend. As long as the pair stays below the falling trend line from 1.1263 to 1.1056, we’d expect the downtrend to continue. However, above the trend line resistance will indicate that a short term cycle bottom is being formed at 1.0812 level on 4-hour chart, then the following rebound could take price to 1.1000 zone.
Being contained by the long term key support at 93.53 (Mar 19 low), USDJPY rebounds from 93.85 level. However, the rise from 93.85 is treated as consolidation of the short term downtrend from 96.69. Range trading between 93.85 and 95.25 is expected later today. Deeper decline below 93.53 key support is in favor after consolidation and the next target would be at 92.00 level. Near term resistance is now located at 95.25, a break above this level will indicate that the fall from 96.69 has completed, and then further rally is possible to 96.00 level.
EURUSD’s short term uptrend from 1.3423 remains. Further rise towards the upper border of the price channel on 4-hour chart is expected. Pullback would more likely be seen after touching the upper border resistance. Near term support is at 1.3830, and key support is at 1.3800, below this level will signal deeper decline to test the support of the lower border of the price channel.
AUDUSD broke above 0.7709 resistance and remains in short term uptrend from 0.7450. The price action in the trend range between 0.7685 and 0.7808 is treated as consolidation of the uptrend. Further rally is still possible to 0.7900 after consolidation. Initial support is at 0.7685, as long as this level holds, uptrend will continue. However, below 0.7685 level will indicate that the rise from 0.7450 has completed at 0.7808 already, then deeper decline could be seen to 0.7500-0.7550 area.
USDCHF drops down from 1.1263 and the fall has extended to as low as 1.1069 level. Further fall is still possible to test 1.0977 previous low support, a break below this level will signal deeper decline to 1.0800-1.0900 area. However, the price action from 1.0977 is more likely consolidation of the downtrend from 1.1740, as long as 1.0977 support holds, we’d expect uptrend to resume and one more rise towards 1.1300 is still possible.
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