Major Currencies’ Midday Report 04/6/2010

EURUSD

The pair touched the awaited level from this morning at 1.2215, where it started attacking the pivotal support at 1.2175; therefore, the suggested morning scenario will be activated since we have not witnessed a clear breach of 1.2290. Note the importance of the US Labor Report which might affect the movement.

The trading range for today is among the key support at 1.2000 and the key resistance at 1.2365.
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The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.EUR

GBPUSD
The pair is still wedged within the bearish triangle pattern shown above. We still hold onto our morning expectations as we await for the breach of 1.4550 to activate the suggested bearish scenario.

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The trading range for today is among the key support at 1.4420 and the key resistance at 1.4795.
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The short term trend is to the downside as far as 1.5590 remains intact with targets at 1.3800.GBP

USDJPY
The pair built a base on the previously breached 76.4% Fibonacci correction preventing it from touching the suggested retest level mentioned this morning at 91.80. Momentum indicators still show negative signs, where we expect it to pressure the pair to move bearishly before resuming the expected bullish move, according to the suggested morning scenario.

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The trading range for today is among the key support at 91.60 and the key resistance at 94.00.
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The short term trend is to the downside as far as 101.65 remains intact with targets at 82.60.JPY

USDCHF

The pair is moving to the downside in a gradual manner since this morning through the minor descending channel shown above. We expect this channel to carry the pair towards attacking the pivotal support awaited to be breached at 1.1480 then activate the bearish intraday scenario. Stochastic is still providing negative signals that support these expectations.
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The trading range for today is among the key support at 1.1345 and the key resistance at 1.1685.
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The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2000.CHF

USDCAD
The pair neared the retest level at 1.0435 once again, where we notice ongoing negative pressure constantly moving the pair below 61.8% Fibonacci correction at 1.0390; our morning expectations remain valid and we await reaching 1.0300 which will define the upcoming short term trend.

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The trading range for today is among the key support at 1.0295 and the key resistance at 1.0565.
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The short term trend is to the upside as far as 0.9925 remains intact with targets at 1.1485.CAD

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