Major Currencies’ Morning Report 08/ July /2010

EURUSD

The pair was able to achieve yesterday’s awaited ascending actions to touch the primary target around 1.2670, where it continues to move within the minor bullish channel shown in the image below. EUR
Some minor bearish correction is expected due to the negativity of momentum indicators, where we expect the pair to touch 1.2610 beforecontinuing the bullish intraday trend; the main target is around 1.2780. Keep in mind that the breach of 1.2540 could postpone achieving the suggested bullish targets.The trading range for today is among the key support at 1.2470 and the key resistance at 1.2840.The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.

GBPUSD

The pair succeeded in achieving yesterday’s suggested scenario flawlessly to trade within the sideway range between 1.5080 and 1.5230. Momentum indicators are showing negative signs that might pressure the pair to attempt some bearishness to gain enough bullish momentum to breach the sideway range 1.5230 and pave the way towards 1.5360 as a primary target. Chances of achieving the expected bullish intraday direction will remain intact as long as trading remains above 1.5080.GBP
The trading range for today is among the key support at 1.5080 and the key resistance at 1.5360.
The short term trend is to the downside as far as 1.5590 remains intact with targets at 1.3800.

USDJPY

The pair strongly pushed to the upside to breach pivotal resistance starting from 88.00 then 88.20, which is above SMA 50. These factors make us expect a bullish intraday direction that targets retesting 89.45, but keep in mind that the negativity on momentum indicators could cause some fluctuation around the broken resistance levels that have currently turned into support before heading towards the suggested targets.JPY
The trading range for today is among the key support at 87.00 and the key resistance at 89.45.
The short term trend is to the downside as far as 101.65 remains intact with targets at 82.60.

USDCHF
The pair succeeded in trading according to yesterday’s suggested scenario perfectly, managing to stabilize around the awaited target 1.0500. The pair finds strong support at this level which could push it towards resistance for the bearish short term channel that has currently descended to 1.0570, before heading for more expected bearish movement over an intraday basis; technical targets start at 1.0425 then 1.0350. For the bearish trend to prevail it requires trading to remain below 1.0570 – 1.0600.CHF
The trading range for today is among the key support at 1.0350 and the key resistance at 1.0640.The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2295.

USDCAD
The pair resumes yesterday’s bearish trend after retesting support for the previously breached bullish channel, pointed out in our midday report yesterday. Through the four-hour chart, the pair was able to breach the neckline for the bearish trend at 1.0480 that makes us expect that the pair will witness a bearish intraday direction; primary targets start at 1.0340. We could witness some fluctuation due to the positivity on momentum indicators to retest the mentioned neckline, before achieving the bearish targets that require stability below 1.0540 to prevail.CAD
The trading range for today is among the key support at 1.0265 and the key resistance at 1.0540.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