Short Term Analysis – October 12, 2006

EURUSD

20061012_eurusd_1.gifEURUSD is in down trend, further fall lower to test the previous low support at 1.2457 is possible later today. On the other side, the pair is oversold, correction is needed immediately before the resumption of the down trend. Key resistance is at 1.2612, a break above this level may signal the reversal to the down trend.

AUDUSD

20061012_audusd_1.gifAUDUSD stays in the falling price channel and is in down trend. Further fall below 0.7400 level can be expected later today. The near term resistance is at the top of the price channel, and as long as this resistance holds, down trend will continue.

GBPUSD

20061012_gbpusd_1.gifGBPUSD is in down trend, and further fall towards 1.8400 level is still possible in the next several days. On the other side, the pair is oversold, correction is needed immediately before the resumption of the down trend. Key resistance is at 1.8702, a break above this level may signal the reversal to the down trend.

USDCAD

20061012_usdcad_1.gifUSDCAD is in up trend, further rise higher to test the previous high resistance at 1.1457 is possible in the next several days. The near term support is at the up trend line, and as long as the trend line support holds, up trend will continue.

USDCHF

20061012_usdchf_1.gifUSDCHF is in up trend, and further rise towards 1.2800 level is still possible in the next several days. On the other side, the pair is overbought, correction is needed immediately before the resumption of the up trend. Key support is now at 1.2590, a break below this level may signal the reversal to the up trend.

USDJPY

20061012_usdjpy_1.gifUSDJPY is in up trend, and further rise towards 120.50 level is possible later today. Near term support is at the up trend line, and as long as the trend line support holds, up trend will continue.