Daily Forex Analysis – May 13, 2008

USDCHF Analysis.
USDCHF formed a short term cycle top at 1.0623 on 4-hour chart. The rise from 0.9995 (Apr 22 low) might be completed and the fall from 1.0623 could possibly be resumption of the down trend. Deeper decline to test 1.0298 is expected in a couple of days, a break of this level will signal reversal to the long term up trend.

USDJPY Analysis.
USDJPY rebounds from 102.58 and is forming a short term cycle bottom on 4-hour chart. The rise from 102.58 could possibly be resumption of the up trend. Further rally to test 105.70 is now in favor. Near term support is at 102.58, only break of this level will indicate lengthier correction is underway and delay the resumption of the uptrend.

GBPUSD Analysis.
GBPUSD broke above 1.9621 resistance and formed a short term cycle bottom at 1.9442. Further rise to 1.9800 area to reach the next cycle top is possible in the next few days. Initial support is now located at 1.9442, only break of this level will signal resumption of the down trend.

EURUSD Analysis.
EURUSD is testing 1.5594 resistance. Break above this resistance will more likely be seen and rise to 1.5740 area to reach the next cycle top is possible. Initial support is at 1.5365 and followed by 1.5284, only break of 1.5284 level will signal resumption of the down trend.

USDCAD Analysis.
No changed in our view, USDCAD stays in range between 0.9987 and 1.0242. Break below 0.9987 is still in favor after consolidation. Key resistance is located at 1.0326, a break of this level will signal resumption of the long term up trend.

AUDUSD Analysis.
AUDUSD is forming a sideways consolidation in a range between 0.9275 and 0.9541 (Apr 23 high). Fall to retest 0.9275 support will more likely be seen. Only rise above the key resistance at 0.9541 will signal resumption of the long term up trend.

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