Daily Forex Analysis – Jun 2, 2008 – Forex Market Analysis

USDCHF Analysis.
USDCHF pulls back from 1.0526 and is forming a short term cycle top on 4-hour chart. Deeper decline to retest 1.0214 previous low support is expected and break below this level to reach the next cycle bottom is possible. Initial resistance is at 1.0526, only rise above this level will signal resumption of up trend.

USDJPY Analysis.
USDJPY breaks above 105.70 (May 2 high) resistance. Further rally to 106.60 area to reach the next cycle top on 4-hour chart is still possible later today, and the next cycle top is nearing. Key support is located at 104.45, a break of this level will indicate that the up trend from 102.73 has completed, and then pullback to retest 102.73 is expected to follow.

GBPUSD Analysis.
GBPUSD is in consolidation to the up trend. As long as 1.9672 support holds, we’d expect up trend to resume, and further rise to test 2.0029 (Apr 21 high) resistance is possible in the next few days. Only break of 1.9672 level will indicate lengthier correction is underway, and deeper decline could be seen to 1.9550 area.

AUDUSD Analysis.
Being contained by 0.9510 support, AUDUSD rebounds from 0.9512 level. The rise from 0.9512 could possibly be resumption of up trend, and the pair might be forming a short term cycle bottom on 4-hour chart. Further rally is expected to test 0.9653 previous high resistance in a couple of days.

EURUSD Analysis.
EURUSD’s down trend remains. Rebound from 1.5462 is treated as consolidation to the down trend. Further fall is expected to test 1.5284 (May 8 low). Initial support is at 1.5462 level, a break of this level will signal resumption of down trend.

USDCAD Analysis.
USDCAD breaks above 0.9957 previous high and reaches as high as 0.9978. Further rebound to 1.0050 area is still possible in the next several days. Key support is located at 0.9818, only break below this level will signal resumption of down trend.

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