Short Term Analysis – January 19, 2007

EURUSD

20070119_eurusd_1.gifEURUSD is bottoming at 1.2865 on 4 hours chart, key resistance is at 1.2988, a break above this level may confirm the cycle bottom, and further rise above 1.3014 to reach the next cycle top on 4 hours chart is still possible later today. Near term support is at 1.2895, only break below this level may signal the resumption of the down trend.

AUDUSD

20070119_audusd_1.gifAUDUSD reached the top of the price channel, pullback towards the bottom of the channel can be expected later today. Near term support is at the bottom of the channel, and followed by 0.7812, a break below 0.7812 may signal the resumption of the down trend. Near term resistance is at 0.7904, break above this level indicate lengthier correction to the down trend is underway, and further rise towards 0.7930 is possible.

GBPUSD

20070119_gbpusd_1.gifGBPUSD broke above 1.9750 previous high, a sideways consolidation can be expected before the resumption of the up trend, and pullback to 1.9600 level can be expected later today. Near term resistance is at 1.9777, a break above this level may signal the resumption o the up trend.

USDCAD

20070119_usdcad_1.gifUSDCAD traded in a narrow range between 1.1711 and 1.1772. Near term support is at 1.1711, a break below this level may signal the resumption of the down trend, and fall below 1.1644 to reach the next cycle bottom on 4 hours chart can be seen in the next several days. Near term resistance is at 1.1772, only break above this level may signal the resumption of the up trend.

USDJPY

20070119_usdjpy_1.gifUSDJPY broke above 121.38 (the day high of Dec 5, 2005) and reached 121.57 high, further rally towards 122.00 level is possible later today. Near term support is at the up trend line and followed by 120.32, only break below 120.32 level may delay the resumption of the up trend.

USDCHF

20070119_usdchf_1.gifUSDCHF broke above 1.2528 previous high and pulled back from 1.2546, further fall towards 1.2400 level will more likely be seen later today. Near term resistance is at 1.2546, break above this level may signal the resumption of the up trend, and more sharply rise towards 1.2650 level can be expected next week.