Short Term Analysis – December 18, 2007

GBPUSD
As expected, GBPUSD reached the long term support at 2.0100, a break of this level will signal the resumption of the down trend, and further fall towards the long term key support at 1.9652 (Aug 17 low) is expected to follow.

USDJPY
USDJPY’s up trend remains and the fall from 113.60 is treated as consolidation to the up trend. Further rally towards 115.00 is still possible after consolidation. Key support is at 110.49, only break of this level will signal the reversal to the up trend.

USDCAD
USDCAD broke below the up trend line from 0.9834 to 1.0004 and formed a short term cycle top at 1.0248. Further fall towards 0.9600 area is still possible, a break below 1.0004 will confirm such case.

EURUSD
EURUSD is in down trend. The rebound from 1.4331 is treated as consolidation to the down trend. Further fall towards 1.4200 is still possible after consolidation. Near term resistance is at 1.4530, and as long as this resistance holds, down trend will continue.

AUDUSD
AUDUSD is in down trend. The fall from 0.8906 extended to as low as 0.8557, and further decline towards 0.8400 is expected. Near term resistance is at 0.8710, as long as this resistance holds, down trend will continue.

USDCHF
USDCHF is in up trend. The rise from 1.1153 extended to as high as 1.1573 level. Further rally towards 1.1700 area is still possible after consolidation. Near term support is at he up trend line from 1.1153 to 1.1233, only break below the trend line support will signal the reversal to the up trend.

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