Forex Market Technical Analysis

December 30, 2007

EURUSD

EURUSD broke above the resistance of the down trend line from 1.4966 to 1.4750, and formed a cycle bottom at 1.4309 on daily chart. Further rise above 1.4966 to reach the next cycle top is still possible. Key support is at 1.4309, only fall below this level will signal the resumption of the down trend. For long term analysis, the pair is in consolidation of the long term up trend. Rise above 1.4966 previous high to reach the next long term cycle top on weekly chart is still in favor.

GBPUSD

GBPUSD's down trend remains. The rebound from 1.9755 is treated as consolidation to the down trend. Further fall below the previous low support at 1.9652 (Aug 17 low) is still possible after consolidation. Near term resistance is at the down trend line from 2.1161 to 2.0830, and as long as the trend line resistance holds, we'd expect down trend to continue. For long term analysis, the pair formed a long term cycle top at 2.1161 on weekly chart. Further fall towards 1.8000 area is expected.

AUDUSD

No changed in our view, AUDUSD is in down trend. The rebound from 0.8551 is treated as consolidation to the down trend. Near term resistance is at 0.8918, as long as this resistance holds, down trend will continue. For long term analysis, AUDUSD is in consolidation to the long term up trend, Rise towards 1.0000 to reach the next cycle top on weekly chart is still possible after consolidation.

USDJPY

USDJPY broke below 112.73 previous low support, and formed a cycle top at 114.77 on daily chart. Further pullback towards 110.00 area is still possible. Near term resistance is at 114.77, a break above this level will signal the resumption of the up trend. For long term analysis, the pair formed a long term cycle bottom at 107.21 on weekly chart, further rally towards 124.13 (June 22 high) is now in favor.

USDCHF

USDCHF formed a cycle top at 1.1595 on daily chart. Further pullback towards 1.1100 area to reach the next cycle bottom is still possible. Near term resistance is at 1.1595, a break above this level will signal the resumption of the up trend. For long term analysis, the pair formed a long term cycle bottom at 1.0890 on weekly chart, and further rise towards 1.2900 area is still in favor.

USDCAD

No changed in our view, USDCAD formed a cycle top at 1.0248 on daily chart. Further pullback towards 0.9500 area to reach the next cycle bottom on daily chart is still in favor. Key resistance is at 1.0248, only break of this level will signal the resumption of the up trend. For long term analysis, the pair formed a long term cycle bottom at 0.9056 on weekly chart. Consolidation in a range between 0.9056 and 1.0750 can be seen in the next several months.

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