Short Term Analysis – January 17, 2007

AUDUSD

AUDUSD fell from 0.7858 and reached the bottom of the price channel, beak below the channel support may signal the resumption of the down trend, and further decline towards 0.7759 is possible in the next several days. Near term resistance is at 0.7858, break above this level will indicate lengthier correction to the down trend is underway, and further rally towards 0.7895 can be expected.

GBPUSD

Being contained by the previous high resistance at 1.9750, GBPUSD fell from 1.9706, a sideways consolidation is needed before the resumption of the up trend. Near term support is at the bottom of the price channel, and followed by 1.9535 level. Near term resistance is at 1.9706, a break above this level may signal the resumption of the up trend.

EURUSD

EURUSD is bottoming at 1.2865 on 4 hours chart, key resistance is now at 1.2988, and a break above this level may confirm the cycle bottom. Near term support is at 1.2865, only fall below this level may signal the resumption of the down trend.