Daily Forex Analysis – May 16, 2008

AUDUSD Analysis.
Being supported by 0.9275, AUDUSD rebounded from 0.9291. The pair might be forming a symmetrical triangle pattern in a range trading between 0.9275 and 0.9541 (Apr 23 high). Further rise towards 0.9800 area is expected after the symmetrical triangle pattern is broken above. Key support is now located at 0.9275, only break of this level will signal resumption of the down trend.

EURUSD Analysis.
EURUSD is forming a sideways consolidation in a range between 1.5284 and 1.5594. As long as 1.5284 support holds, we’d expect uptrend to resume and further rally to 1.5650 area to reach the next short term 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.

USDJPY Analysis.
Being contained by 105.70 resistance, USDJPY pulled back from 105.44. However, the fall from 105.44 is treated as consolidation to the up trend and further rise to 107.00 area is still possible after consolidation. Key support is at 102.58, only break of this level will signal reversal to the long term up trend.

USDCHF Analysis.
USDCHF is testing 1.0623 resistance. As long as 1.0623 level holds, we’d expect down trend to resume and pullback below 1.0388 is possible. If 1.0623 level gives way, the short term target would be at 1.0700 area.

GBPUSD Analysis.
Being supported by 1.9337 (Jan 22 low), GBPUSD rebounds from 1.9363 level. Sideways consolidation in a range between 1.9363 and 1.9633 could be seen before breaking below 1.9337 level. Initial resistance is at 1.9633, a break of this level will signal reversal to the down trend.

USDCAD Analysis.
USDCAD is in down trend. The rebound form 0.9962 is treated as consolidation to the down trend. Further fall to 0.9900 area is still possible after consolidation. Near term resistance is at 1.0105, we’d expect down trend to resume below this level.

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