Short Term Analysis – Feb 22, 2008 – Forex Market Analysis

USDCHF Analysis.
USDCHF broke below the previous low support at 1.0884 and reached as low as 1.0865 level. Further fall to test 1.0729 (Feb 1 low) could still be seen next week. Near term resistance is at 1.1031, as long as this resistance holds, we’d expect down trend to continue. Key resistance is at 1.1105, only break of this level will indicate lengthier correction to the long term down trend.

USDCAD Analysis.
No changed in our view, USDCAD formed a short term cycle top at 1.0198 level. Sideways consolidation is expected in a couple of days. Key support is at 1.0021, only break of this level will signal the reversal to the up trend. Near term resistance is at 1.0198, a break of the level will signal the resumption of the up trend.

EURUSD Analysis.
EURUSD broke above 1.4756 previous high and reached as high as 1.4837. Further rally to test the resistance at 1.4951 (Feb 1 high) level is still possible. Near term support is at 1.4700 and followed by the up trend line from 1.4438 to 1.4613, as long as the trend line support holds, up trend will continue.

GBPUSD Analysis.
Being supported by 1.9337 (Jan 22 low), GBPUSD rebounds sharply from 1.9361 level. Further rise towards 1.9900 area to reach the next short term cycle top is still possible next week. Key support is at 1.9361, only break of this level will signal the resumption of the down trend.

USDJPY Analysis.
No changed in our view, USDJPY is in consolidation to the up trend. Further rise towards 110.00 area to reach the next short term cycle top on 4-hour chart is still possible after consolidation. Near term support is at 106.98, as long as this support holds, we’d expect up trend to resume.

AUDUSD Analysis.
AUDUSD is forming a sideways consolidation in a range between 0.9111 and 0.9236. Further rally to test 0.9398 (Nov 7, 2007 high) is still possible after consolidation, and a break of 0.9236 will signal the resumption of the up trend. Near term support is at the price channel, as long as the channel support holds, up trend will continue.

More long term forex analysis.