Forex Analysis – May 23, 2008 – Forex Market Analysis

USDCHF Analysis.
USDCHF rebounds from 1.0232 and is forming a short term cycle bottom on 4-hour chart. Sideways consolidation in a range between 1.0232 and 1.0390 is expected in a couple of days. Initial resistance is at 1.0390. Near term support is at 1.0232, a break of this level will signal resumption of the down trend.

GBPUSD Analysis.
GBPUSD’s up trend remains and extends to as high as 1.9849 level. Further rise to 2.000 area is still possible in the next few days. Near term support is at 1.9612 and followed by the up trend line from 1.9363 to 1.9463.

AUDUSD Analysis.
AUDUSD formed a short term cycle top at 0.9653 on 4-hour chart. Sideways consolidation is expected in a range between 0.9510 and 0.9653 in the next few days. Initial support is at 0.9510, as long as this support holds, we’d expect up trend to resume and further rally to 0.9800 is still in favor.

USDJPY Analysis.
Being contained by 102.58 previous low support, USDJPY rebounded from 102.73 and formed a short term cycle bottom on 4-hour chart. Further rise to test 105.44 is expected next week, a break of this level will indicate that the sideways consolidation from 105.70 (May 2 high) has completed and up trend resumes.

EURUSD Analysis.
EURUSD pulls back from 1.5813 and might be forming a short term cycle top on 4-hour chart. Sideways consolidation in a range between 1.5631 and 1.5813 could be seen in the next several days. As long as the up trend line from 1.5284 to 1.5419 holds, we’d expect up trend to resume and further rally to test 1.6019 (Apr 22 high) is still possible.

USDCAD Analysis.
USDCAD’s down trend from 1.0242 extends to as low as 0.9818. Rebound from 0.9818 is treated as consolidation to the down trend. Further fall to test 0.9709 (Feb 28 low) is possible after consolidation. Near term resistance is at 0.9959, as long as this resistance holds, down trend will continue.

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