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.
GBPUSD formed a short term cycle top at 1.4985 on 4-hour chart. The fall from 1.4985 would possibly be resumption of the downtrend from 2.0158 (July 15, 2008 high). Further fall is expected to test 1.4051 support, a break down below this level will signal deeper decline towards 1.3503 previous low. Initial resistance is now located at 1.4380, as long as this level holds, we’d expect the short term downtrend from 1.4985 to continue.
USDCAD breaks above 1.2538 resistance, suggesting that the short term uptrend from 1.2024 has resumed, and further rally to test 1.2765 resistance could be seen in next several days. Initial support is at 1.2383, below this level could take price back to 1.2250 area.
Being contained by the rising trend line from 87.12 to 88.58, USDJPY rebounds from 89.70. More sideways consolidation between 89.70 and 92.40 could be expected in next several days. Near term resistance is located at 92.40, a break above this level will signal further rally to test 94.61 (Jan 6 high) resistance. Initial support is at 89.70, below this level will indicate that the uptrend from 87.12 has completed, and further fall towards 88.00 could be seen to follow.
No changed in our view, USDCHF is running in a price channel on 4-hour chart. As long as the channel support holds, we’d expect short term uptrend from 1.1313 to continue. Medium term key support is now located at 1.1399, below this level will indicate that the rise from 1.0366 (Dec 29,2008 low) has completed.
AUDUSD formed a short term cycle top at 0.6849 level on 4-hour chart. Deeper decline is still possible to 0.6350 zone later today. However, the fall from 0.6849 is treated as correction of the short term uptrend from 0.6248, as long as 0.6248 support holds, we’d expect uptrend to resume, and further rally could be seen to 0.7100 after correction.