Major Currencies’ Midday Report 28/5/2010

EURUSD

The pair rushed to retest the previously breached support level shown above in red. Momentum indicators are still showing negative signs as the pair reaches the resistance for the minor ascending channel and therefore a minor bearish correction is expected, before resuming the bullish intraday move targeting next 1.2550. It is vital that stability is achieved above 1.2290 for the expected bullish direction to prevail. The trading range for today is among the key support at 1.2150 and the key resistance at 1.2550.The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.EUR


GBPUSD
After nearing the support for the upside channel – shown above – the pair strongly rushed upwards to touch top levels recorded yesterday at 1.4600. The MA 100 will impede achieving more upside movement, alongside negative signs from momentum indicators. This will force the pair to rebuild a level on 1.4530 before continuing the expected bullish intraday trend; targeting next 1.4700.The trading range for today is among the key support at 1.4390 and the key resistance at 1.4720.The short term trend is to the downside as far as 1.5590 remains intact with targets at 1.3800.GBP


USDJPY
The pair touched the awaited resistance level at 91.25, while it currently stabilizes below this level. Therefore, the suggested morning scenario will be activated as we await for the bearish intraday trend to start towards mentioned targets this morning.The trading range for today is among the key support at 89.00 and the key resistance at 91.95.The short term trend is to the downside as far as 101.65 remains intact with targets at 82.60.JPY


USDCHF
The pair retested 1.1570 – the previously breached 50% Fibonacci correction that has currently turned into resistance – where negative pressure has caused it to return to descend within the downside channel shown above. Signs of a bearish technical pattern are appearing, where the suggested neckline is at 1.1445, thus encouraging us to expect an overall bearish intraday trend that may need to build a base on 1.1540 before heading towards technical targets at 1.1445 then 1.1355. The bearish direction requires trading to remain below 1.1635.The trading range for today is among the key support at 1.1355 and the key resistance at 1.1635.The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2000.CHF


USDCAD
The pair stabilized below 1.0480 to continue its negative pressure while ignoring oversold signs on momentum indicators. The MA 100 stands as a temporary barrier in front of achieving bearish movement. Overall, the current descending channel as well as stability below 1.0480 will make us maintain our expected bearish intraday scenario; main targets are at 1.0390.The trading range for today is among the key support at 1.0390 and the key resistance at 1.0565.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