Short Term Analysis – December 5, 2006

EURUSD

20061205_eurusd_1.gifNo change in our view, EURUSD stays in the rising price channel and the bias remains bullish. Further rise towards 1.3400 level can be expected later today. Near term support comes at 1.3219, as long as this support holds, up trend will continue.

USDCHF

20061205_usdchf_1.gifUSDCHF is in a slightly correction to the down trend and is testing the down trend line resistance, if this resistance gives way, rebound to 1.2000 level can be expected. Down trend will resume after this correction.

GBPUSD

20061205_gbpusd_1.gifGBPUSD is forming a slightly correction to the up trend, further fall to touch the bottom of the price channel can be expected, and up trend would resume by the support of the price channel. The next support is at 1.9634, as long as this support holds, up trend will continue.

AUDUSD

20061205_audusd_1.gifAUDUSD is in correction to the up trend and is topping at 0.7925 on 4 hours chart, key support is at 0.7847, a break below this level may confirm the cycle top, and further fall towards 0.7820 area can be expected. Up trend will resume after this correction.

USDCAD

20061205_usdcad_1.gifUSDCAD is topping at 1.1475 on 4 hours chart, key support is at 1.1369, a break below this level may confirm the cycle top, and further fall below 1.1285 can be expected in the next several days.

USDJPY

20061205_usdjpy_1.gifUSDJPY is in down trend and fall below 114.96 is possible later today. Near term resistance is at the down trend line, and followed by 116.54, only break above 116.54 can signal the reversal to the down trend.