Short Term Analysis – May 8, 2007

20070508_usdjpy_1.gifUSDJPY
No changed in our view, USDJPY is in up trend. The fall from 120.46 extended to as low as 119.78, and rebounded from the up trend line from 117.59 to 119.06. Near term support is at the up trend line, as long as the trend line support holds, up trend will continue. Near term resistance is at 120.46, a break above this level will signal the resumption to the up trend.

20070508_usdcad_1.gifUSDCAD
USDCAD broke below the previous low support at 1.1031 (Aug 31, 2006 low) level and reached as low as 1.1005. Further fall towards 1.0930 (May 31, 2006 low) can be expected in the next several days. Near term resistance is at the falling price channel and followed by 1.1142, only break above 1.1142 level will signal the reversal to the down trend.

20070508_usdchf_1.gifUSDCHF
Key support at 1.2092 is broken below, USDCHF topped at 1.2188 on 4 hours chart. Further fall towards 1.2050 level is still possible in a couple of days, and the previous low support at 1.1993 will more likely be held. Key resistance is at 1.2188, a break above this level will signal the resumption of the up trend.

20070508_gbpusd_1.gifGBPUSD
GBPUSD is in down trend, the rebound from 1.9843 is treated as in correction to the down trend, and down trend will resume after breaking below 1.9843 level. Near term resistance is at 2.0073, only break above this level will signal the reversal to the down trend.

20070508_audusd_1.gifAUDUSD
AUDUSD is in down trend, the rise from 0.8170 is treated as in correction to the down trend, and further fall towards 0.8100 is still possible after this correction. Near term resistance is at the down trend line from 0.8392 to 0.8327, now at 0.8293, and as long as the trend line resistance holds, down trend will continue.

20070508_eurusd_1.gifEURUSD
EURUSD topped at 1.3681, the rebound from 1.3535 is treated as in correction to the down trend. Further fall towards 1.3400 can be expected after correction, and a break below 1.3535 will confirm such case. Key resistance is at 1.3681, only break above this level will signal the resumption of the up trend.