Short Term Analysis – January 22, 2007

EURUSD

20070122_eurusd_1.gifKey resistance at 1.2988 is broken above, EURUSD bottomed at 1.2865 on 4 hours chart. Further rise above 1.3014 to reach the next cycle top on daily chart can be expected in the next several days. Near term resistance is at 1.3000, break above this level indicate the medium term up trend is underway. Near term support is at 1.2895, and key support is at 1.2865, only break below the key support may signal the resumption of the down trend.

AUDUSD

20070122_audusd_1.gifAUDUSD is in correction to the down trend, pullback towards the bottom of the price channel will more likely be seen later today. Near term resistance is at the top of the price channel, now at 0.7915, break above the channel resistance indicate medium term up trend is underway, and further rise above 0.7977 previous high can be expected in the next several days.

GBPUSD

20070122_gbpusd_1.gifGBPUSD is forming a sideways consolidation in a range between 1.9635 and 1.9777. Further rise towards 1.8946 (the day high of Dec 1, 2006) is possible if near term resistance at 1.9777 is broken above. Near term support is at 1.9694 and followed by 1.9635, only break below 1.9635 may delay the resumption of the up trend.

USDCAD

20070122_usdcad_1.gifUSDCAD is in down trend, further fall below 1.1644 to reach the next cycle bottom on 4 hours chart is still possible in a couple of days. Near term resistance is at 1.1772, break above this level may signal the resumption of the up trend, and rise above 1.1802 can be seen.

USDJPY

20070122_usdjpy_1.gifUSDJPY is in up trend, and further rise towards 122.00 level is still possible later today. Near term support is at the up trend line, break below the trend line support indicate the lengthier correction to the up trend is underway, and a slightly pullback towards 120.50 can be expected.

USDCHF

20070122_usdchf_1.gifUSDCHF is topping at 1.2546 on 4 hours chart, fall below the key support at 1.2416 level may confirm such case, and further decline towards 1.2350 can be expected in the next several days. Near term resistance is at 1.2546, break above this level may signal the resumption of the up trend.