Short Term Analysis – October 2, 2007

EURUSD is forming a short term cycle top at 1.4281 on 4 hours chart. Further pullback towards the up trend line from 1.3550 (Sep 4 low) to 1.3827 (Sep 18 low) is expected. However, the fall from 1.4281 is treated as consolidation to the up trend, and rise towards 1.4450 is still possible after consolidation.

AUDUSD broke above the long term key resistance at 0.8870 (July 25 high) and reached as high as 0.8948. Further rise towards 0.9100 is expected. Near term support is at 0.8770 and followed by 0.8605, only break below 0.8605 level will signal the reversal to the up trend.

USDCAD broke below 0.9935 previous low and down trend resumed. Further fall towards 0.9800 is expected. Near term resistance is at 1.0094, only rise above this level will indicate lengthier correction to the down trend.

USDJPY traded in a range between 113.97 and 116.36. A break above 116.36 level will signal the resumption of the up trend and rise towards 119.00 is expected. Near term support is at 113.97, if gives way, the price will find support at 112.58 previous low.

GBPUSD broke above 2.0319 previous high and further rise towards 2.0600 is still possible later today. Near term support is at the up trend line, and as long as the trend line support holds, up trend will continue.

USDCHF is in down trend, the rise from 1.1622 is treated as consolidation to the down trend, further fall towards 1.1500 area is still possible in a couple of days. Near term resistance is at 1.1740, and as long as this resistance holds, down trend will continue.

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