Short Term Analysis – December 11, 2006

USDJPY

USDJPY is moving higher to test the price channel resistance at 117.00, and down trend would resume after touching this level. On the other side, if 117.00 gives way, more sharply rise towards 117.50 can be expected.

AUDUSD

AUDUSD is in correction to the up trend, and further fall towards 0.7800 level to reach the next cycle bottom on 4 hours chart is still possible later today. Up trend will resume after this correction, and a break above 0.7929 will signal the resumption of the up trend.

USDCAD

USDCAD is in up trend, further rise towards 1.1600 is possible in the next several days. Near term support is at the up trend line, and as long as the trend line support holds, up trend will continue.

GBPUSD

GBPUSD is in correction to the up trend, further fall towards 1.9434 level is still possible later today. Key resistance is now at 1.9728, a break above this level may signal the resumption of the up trend.

EURUSD

EURUSD is in correction to the up trend, and further fall towards 1.3100 is still possible later today. Key resistance is now at 1.1.3364, a break above this level may signal the resumption of the up trend.

USDCHF

USDCHF is in correction to the down trend, further rise above near term resistance at 1.2115 to reach the next cycle top is possible later today. Key support is at 1.1879, a break below this level may signal the resumption of the down trend.