Short Term Analysis – August 15, 2006

USDCAD is in up trend, further rise towards 1.1345 resistance is possible later today, a break above this level may signal the medium term bullish movement, and the target of this bullish movement would be above 1.1457 previous high.

EURUSD

EURUSD is in down trend. The fall from 1.2911 could possibly be correction to the previous up trend from 1.2457 to 1.2911, more volatility may be expected when a pair is in correction. Rebound towards 1.2850 area is still possible before the end of this correction, and the end of this correction would appear after August 22.

USDJPY

USDJPY is in up trend, and further rise towards 117.00 area is possible later today. key support is at 114.67, only break below this level may signal a reversal to the up trend. On the other side, the rise from 113.96 could possibly be correction to the previous down trend from 117.87 to 113.96, more volatility can be expected when a pair is in correction. Pullback to test 114.67 support is possible in the next several days.

GBPUSD

GBPUSD is in down trend. The fall from 1.9142 could possibly be correction to the previous up trend from 1.8175 to 1.9142, more volatility may be expected when a pair is in correction. Rebound towards 1.9142 previous high is still possible before the end of this correction, and the end of this correction could appear within two weeks.

AUDUSD

AUDUSD has topped at 0.7712 on 4 hours chart. Near term support is at the up trend line drawing from 0.7269 to 0.7405 now at 0.7574, if this support gives way, this pair would fall below 0.7563 level.

USDCHF

USDCHF is in up trend, further rise towards 1.2480 level is still possible later today. The rise from 1.2191 could possibly be correction to the previous down trend from 1.2594 to 1.2191, more volatility can be expected when a pair is in correction. Pullback towards 1.2250 area can be expected in the next several days.

Written by ForexCycle.com