Major Currencies’ Midday Report 06/ July /2010

EURUSD

The pair rushed to the upside but was unable to stabilize above 1.2600. Stochastic lost the bullish momentum, which could push the pair lower to retest the morning suggested areas before resuming to the upside; targets are at 1.2780 and require trading above 1.2400. EUR
The trading range for today is among the key support at 1.2400 and the key resistance at 1.2780.
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The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.

GBPUSD
The pair was able to breach the main resistance at 1.5185 and attempt to stabilize above it, although was not able to set a four-hour closing above it yet. The sideways range resistance is at 1.5202, where we can expect its breach to be the key in activating the expected bullish intraday direction for the remainder of trading which requires a base to be built above 1.5080.GBP
The trading range for today is among the key support at 1.4985 and the key resistance at 1.5300.

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The short term trend is to the downside as far as 1.5590 remains intact with targets at 1.3800.

USDJPY
The pair touched the resistance for the sideways range shown this morning, accompanied by momentum indicators entering overbought areas; therefore, our expectations remain intact if we do not witness a breach of 88.20 – 88.60.JPY
The trading range for today is among the key support at 86.60 and the key resistance at 88.60.

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The short term trend is to the downside as far as 101.65 remains intact with targets at 82.60.

USDCHF
The pair breached the support for the symmetrical triangle shown this morning, where it has retested the breached support which currently turned into resistance around 1.0640. The expected direction for today is bearish as long as trading stabilizes below 1.0670.CHF
The trading range for today is among the key support at 1.0360 and the key resistance at 1.0700.

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The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2295.

USDCAD

The pair descended to breach the support for the mentioned rising wedge, which supports our expectations for a bearish intraday move today. Presently, we await a clear breach for the pivotal support at 1.0555 to pave the way towards the bearish targets starting from 1.0470. Keep in mind the importance of building a base below 1.0680 to insure that these expectations prevail.CAD
The trading range for today is among the key support at 1.0470 and the key resistance at 1.0720.
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The short term trend is to the upside as far as 0.9925 remains intact with targets at 1.1485.

By: Yasir Mubarak
Senior Technical Analyst
yasir.mubarak@ecpulse.com
www.ecpulse.com