# Short Term Analysis – May 21, 2007

USDCHF
As expected, USDCHF broke above 1.2282 previous high resistance, slightly correction will more likely be seen, and pullback towards 1.2230 can be expected in a couple of days. Key support is at the bottom of the price channel, only break below the channel support will signal the reversal to the up trend.

EURUSD
EURUSD is in down trend. The fall from 1.3609 extended to 1.3464, 3 points higher than the previous low at 1.3461. More sharply fall towards 1.3350 is still in favor, and a break below 1.3464 level will signal the resumption of the down trend. Near term resistance is at 1.3609, only break above this level will delay the resumption of the down trend.

GBPUSD
GBPUSD is in down trend. The fall from 2.0132 extended to 1.9700. Further fall towards 1.9600 is still possible later today. Near term resistance is at 1.9780 and followed by the down trend line from 2.0073 to 1.9999, only break above the trend line resistance will signal the reversal to the down trend.

AUDUSD
AUDUSD is in sideways consolidation in a range between 0.8170 and 0.8392 (Apr high), the path will be unpredictable in the range. Rise towards 0.8351 will more likely be seen, and a break above 0.8260 will confirm such case.

USDCAD
As expected, USDCAD broke below 1.0930 (2006 low). More sharply fall towards 1.0800 is still possible in the next several days. Near term resistance is at the down trend line, and as long as the trend line resistance holds, down trend will continue.

USDJPY
USDJPY is in up trend. The rise from 119.46 extended to as high as 121.39. as long as the up trend line from 117.59 to 119.46 support holds, the pullback from 121.39 is treated as consolidation to the up trend, and further rise towards 122.18 (Jan 29 high) can be seen.