Short Term Analysis – May 15, 2007

usdcad chartUSDCAD
USDCAD broke below the up trend line support, further fall to test the previous low support at 1.1004 is sill possible later today, and a break below this level will signal the resumption of the down trend. However, the pair is treated as in correction to the down trend before breaking below 1.1004 level, more sideways consolidation can be expected on 1.1004 support.

gbpusd chartGBPUSD
GBPUSD is in down trend. The rise from 1.9762 is treated as consolidation to the down trend. More sharply fall towards 1.9650 area is still possible later today. Near term resistance is at 1.9846, break above this level will delay the resumption of the down trend. Key resistance is at 1.9999, only break above this level will signal the reversal to the down trend.

audusd chartAUDUSD
No changed to our view, AUDUSD is in sideways consolidation in a range between 0.8170 and 0.8392. Further rise towards 0.8392 is still possible later today. The key resistance at 0.8392 will more likely be held, and fall towards 0.8170 previous low can be expected after breaking below the up trend line from 0.8170 to 0.8229.

usdjpy chartUSDJPY
USDJPY is testing the previous high resistance at 120.53, a break above this level will signal the resumption of the up trend and further rise towards 121.50 can be expected. Key support is at 119.46, break below this level will delay the resumption of the up trend.

usdchf chartUSDCHF
USDCHF is in consolidation to the up trend. Further fall towards the up trend line from 1.2004 to 1.2079 is still possible later today, the up trend will continue on the trend line support, and a break above 1.2223 previous high will signal the resumption of the up trend.

eurusd chartEURUSD
EURUSD is in consolidation to the down trend. Further rise towards the top of the price channel to reach the next cycle top on 4 hours chart is still possible later today, and the next cycle top is nearing. However, the pair is in down trend directed by the falling price channel. Decline towards 1.3400 level can be expected after consolidation and a break below 1.3461 previous low will signal the resumption of the down trend.