Short Term Analysis – March 6, 2007

USDCHF

20070306_usdchf_1.gifUSDCHF is bottoming at 1.2107 on 4 hours chart, key resistance is at 1.2260, a break above this level will confirm the cycle bottom, and further rise towards 1.2300 level can be expected in the next several day. Near term support is at 1.2107, only break below this level may signal the resumption of the down trend.

USDCAD

20070306_usdcad_1.gifNo changed in our view, USDCAD is in correction to the down trend, further rise towards 1.1874 previous high to reach the next cycle top on 4 hours chart is still possible in the next several days. Near term support is at the up trend line, now at 1.1774. Key support is at 1.1705, a break below this level may signal the resumption of the down rend.

USDJPY

20070306_usdjpy_1.gifUSDJPY fall from 121.61 and reach as low as 115.13. Now, the next cycle bottom on 4 hours chart is nearing, the pair would form a consolidation before breaking below 114.41 (the day low of Dec 5, 2006), and rise towards 117.80 level can be expected in the next several days.

GBPUSD

20070306_gbpusd_1.gifGBPUSD broke below the support at 1.9260 (the day low of Jan 8), the long term bearish movement confirmed. Rebound from 1.9183 is treated as consolidation to the down trend, further fall towards 1.9100 to reach the next cycle bottom on 4 hours chart is still possible in the next several days.

EURUSD

20070306_eurusd_1.gifEURUSD broke below the previous low support at 1.3079 and reached as low as 1.3070. Further fall towards 1.3000 level to reach the next cycle bottom on 4 hours chart is still possible in the next several days. Near term resistance is at 1.3140 level, only break above this level may signal the reversal to the down trend.

AUDUSD

20070306_audusd_1.gifAUDUSD broke below the previous low support at 0.7695 (the day low of Jan 31) and reached as low as 0.7680. The rise from 0.7680 is treated as in correction the down trend, further fall towards 0.7650 to reach the next cycle bottom is still possible in the next several days.