Forex Analysis – May 20, 2008 – Forex Market Analysis

EURUSD Analysis.
EURUSD pulls back from 1.5632 and might be forming a short term cycle top on 4-hour chart. Deeper decline to retest 1.5365 support is expected in a couple of days. As long as 1.5365 level holds, we’d expect up trend to resume and one more rise to 1.5700 area is still possible.

AUDUSD Analysis.
AUDUSD broke above 0.9541 (Apr 23 high) resistance and reached as high as 0.9562. Sideways consolidation is expected in a couple of days, and further rally is still possible after consolidation. Near term support is at 0.9450 and followed by 0.9291.

USDJPY Analysis.
USDJPY is in sideways consolidation in a range between 105.70 and 102.58. As long as 102.58 support holds, we’d expect up trend to resume and rise to 10700 area is still in favor after consolidation.

USDCHF Analysis.
No changed in our view, USDCHF is formed a sideways consolidation in a range between 1.0388 and 1.0623. Break below 1.0388 level will more likely be seen. Key resistance is at 1.0623, only break of this level will signal resumption of the long term up trend.

GBPUSD Analysis.
Being contained by 1.9633 resistance, GBPUSD pulls back from 1.9622 and formed a short term cycle top on 4-hour chart. Deeper decline to test 1.9337 (Jan 22 low) support could be seen and break of this level is still in favor. Initial resistance is at 1.9633, only rise above this level will signal lengthier correction to the down trend.

USDCAD Analysis.
USDCAD’s down trend extends to as low as 0.9898. Further fall to 0.9800 area is still possible after consolidation. Near term resistance is at 1.0067, as long as this resistance holds, down trend will continue.

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