Short Term Analysis – September 28, 2006

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USDCAD

20060928_usdcad_1.gifAs expected, USDCAD fell below 1.1118, it is in down trend. Near term resistance is the down trend line, now at 1.1140, as long as the trend line resistance holds, down trend will continue. On the other side, the next cycle bottom on 4 hours chart is nearing, break above the down trend line resistance implies that the cycle bottom is coming soon, key resistance is at 1.1182, a break above this level may confirm the cycle bottom.

USDJPY

20060928_usdjpy_1.gifAs expected, USDJPY rose above 117.51, and further rise towards 118.00 to reach the next cycle top is possible in the next couple of days. Near term support is the bottom of the price channel now at 117.10, and as long as the price channel support holds, up trend will continue.

AUDUSD

20060928_audusd_1.gifAs expected, AUDUSD fell below 0.7483 level and further fall below 0.7472 towards 0.7400 area is still possible in the next several days. Key resistance is at 0.7554, only break above this level may signal the reversal to the down trend.

USDCHF

20060928_usdchf_1.gifUSDCHF is in up trend, further rise above 1.2472 towards 1.2541 is still possible later today. Near term support is at 1.2414, break below this level implies that the pair may be topping on 4 hours chart.

EURUSD

20060928_eurusd_1.gifEURUSD is bottoming at 1.2662 on 4 hours chart, further rise towards 1.2761 key resistance is possible later today, a break above the key resistance may confirm the cycle bottom. Only break below 1.2661 may signal the resumption of the down trend.

GBPUSD

20060928_gbpusd_1.gifGBPUSD is in down trend, further fall towards 1.8820 area is still possible later today. On the other side, the next cycle bottom on 4 hours chart is nearing, break above the down trend line resistance implies that the cycle bottom is coming soon.

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