Major Currencies’ Midday Report 25/5/2010

EURUSD

The pair activated the morning bearish move expectation and built a base on 1.2305, while it’s currently attacking the main support at 1.2180. Momentum indicators are adding strength to this level, but the previously breached bearish technical pattern targets have not been achieved yet. Thus, further bearish intraday movements are expected today targeting 1.2140 next. It is vital that stability is achieved below 1.2295 for our expectations to prevail.
The trading range for today is among the key support at 1.2140 and the key resistance at 1.2360.The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.EURUSD


GBPUSD
The pair succeeded in achieving the suggested morning scenario and neared the first main target at 1.4230. Meanwhile, the pair might retest the breached support before continuing the bearish intraday trend; keep in mind that the breach of 1.4230 will help accelerate the downside move. The trading range for today is among the key support at 1.4155 and the key resistance at 1.4460.The short term trend is to the downside as far as 1.5590 remains intact with targets at 1.3800.GBPUSD


USDJPY
The pair moved to the downside before building a base on the awaited correction level at 90.70 and stabilized below 90.00. Momentum indicators are still providing negative signs that may cause some fluctuation and a retest to 90.00 before further bearish intraday movement towards the morning suggested targets.The trading range for today is among the key support at 88.70 and the key resistance at 91.10.The short term trend is to the downside as far as 101.65 remains intact with targets at 82.60.USDJPY


USDCHF
The pair succeeded in trading flawlessly inline with the morning scenario as seen on the chart above. We may witness a bearish correction for the last bullish wave before resuming the upside trend over intraday basis; the main targets reside at 1.1790.The trading range for today is among the key support at 1.1460 and the key resistance at 1.1790.The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2000.USDCHF


USDCAD
The pair’s bullish wave is within the ascending channel shown above carrying the pair towards the resistance for the ascending short term channel at 1.0890. Stochastic provided a negative crossover over four hour basis; it may force the pair to correct to the downside in a minor move where it’s not expected to surpass 1.0745 before resuming the bullish intraday direction targeting 1.0890 then 1.0960.The trading range for today is among the key support at 1.0565 and the key resistance at 1.0960.The short term trend is to the upside as far as 0.9925 remains intact with targets at 1.1485.USDCAD


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