Forex Analysis – May 27, 2008 – Forex Market Analysis

GBPUSD Analysis.
GBPUSD formed a sideways consolidation in a range between 1.9755 and 1.9852. Further rise to 1.9950 area to reach the next short term cycle top is possible after consolidation. Only break of 1.9755 key support will indicate that a short term cycle top has been formed and pullback could be seen to test the support of the up trend line from 1.9363 to 1.9463.

USDCHF Analysis.
USDCHF is in consolidation in a range between 1.0214 and 1.0354. Rebound to test 1.0354 resistance is still possible later today. As long as 1.0354 resistance holds, we’d expect down trend to resume, and a break of 1.0214 will signal resumption of down trend.

AUDUSD Analysis.
AUDUSD is forming a sideways consolidation in a range between 0.9543 and 0.9653. As long as 1.9510 support holds, we’d expect up trend to resume and further rally to 0.9800 is possible, a break above 0.9653 level will signal resumption of the up trend.

USDJPY Analysis.
No change in our view, USDJPY formed a sideways consolidation in a range between 102.58 and 105.70 (May 2 high). As long as 102.58 support holds, rebound to test 105.44 previous high resistance is expected in a couple of days, and a break of 105.44 level will indicate that the sideways consolidation from 105.70 has completed and up trend resumes.

EURUSD Analysis.
EURUSD trades in a narrow range between 1.5691 and 1.5813. Further rise to 1.5950 is expected after consolidation, and a break of 1.5813 resistance will signal resumption of the up trend. Initial support is at 1.5691, a break of this level will pull price back to test 1.5631 level.

USDCAD Analysis.
USDCAD rebounded from 0.9818 and reach as high as 0.9931. As long as 0.9959 resistance holds, we’d expect down trend to resume and further fall to test 0.9709 (Feb 28 low) is possible after consolidation. Near term support is at 0.9818, a break below this level will signal resumption of the down trend.

For long term forex analysis.

Get Your Free Elliott Wave Tutorial Now!