Short Term Analysis – August 2, 2006

USDCHF is in down trend, initial resistance is the falling trend line resistance, now at 1.2353 level, as long as this resistance holds, down trend will continue. Key resistance is at 1.2422, only break above this level may signal a reversal of the down trend.

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USDJPY is treated as in correction to the down trend, further rise to test the price channel resistance is possible. Key support is now at 114.18, a break below this level may signal the resumption of the down trend.

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EURUSD is in up trend, further rise towards 1.2861 previous high is possible in the next couple of days, as long as the up trend line support holds, up trend will continue. Key support is now at 1.2719, only break below this level may signal a reversal of the up trend.

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GBPUSD is in up trend, further rise towards 1.8877 (the day high of June 5) is possible in next several days, and as long as the up trend line support holds, up trend will continue. Key support is now at 1.8625, only break below this level may signal a reversal of the up trend.

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USDCAD is testing the key resistance at 1.1385, if this level gives way, the cycle bottom may label at 1.1221 on 4 hours chart. As long as this key resistance holds, we treat the pair as in correction to the down trend, and down trend will resume after breaking below the key support at 1.1221.

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The price channel support was broken below yesterday, AUDUSD is treated as in correction to the up trend. It may be bottoming on 4 hours chart. Key resistance is now at 0.7675, a break above this level may confirm the cycle bottom.

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