Daily Forex Analysis – Jun 5, 2008 – Forex Market Analysis

USDCAD Analysis.
USDCAD rebounds sharply to as high as 1.0189, suggesting that the long term sideways consolidation from 1.0378 (Jan 22 high) has completed and long term up trend has resumed. Further rise to 1.0300 short term target is still possible in a couple of days. Near term support is at 1.0100, a break of this level will signal consolidation to the up trend.

EURUSD Analysis.
EURUSD traded in a narrow range between 1.5410 and 1.5483. Deeper decline is expected to test 1.5284 (May 8 low) after consolidation. A break of 1.5410 could signal resumption of down trend. Initial resistance is at 1.5483 and followed by the down trend line from 1.5818 to 1.5628. As long as the trend line resistance holds, down trend will continue.

USDJPY Analysis.
USDJPY formed a short term cycle bottom at 103.87 on 4-hour chart. Further rise to 106.60 area to reach the next cycle top is expected to follow. Initial support is at the up trend line from 102.73 to 103.87, and followed by 103.87. As long as the trend line support holds, up trend will continue.

USDCHF Analysis.
USDCHF rebounded sharply from 1.0272 and formed a short term cycle bottom on 4-hour chart. Further rise to test 1.0623 (May 8 high) is still possible and a break of 1.0526 resistance will confirm such case.

AUDUSD Analysis.
AUDUSD is forming a sideways consolidation in a range between 0.9486 and 0.9653 (May 21 high). Rebound from 0.9486 could possibly be resumption of up trend. Further rise above 0.9653 is possible, and a break of 0.9629 is needed to confirm such case. Only fall below 0.9486 will indicate lengthier consolidation is underway, and then deeper decline to 0.9430 area is expected to follow.

GBPUSD Analysis.
GBPUSD is now in down trend. Deeper decline is expected to test 1.9363 (May 14 low). A break of this level will signal the resumption of long term down trend. Initial resistance is at 1.9637 and followed by the down trend line. As long as the trend line resistance holds, down trend will continue.

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