Major Currencies’ Morning Report 02/6/2010

EURUSD

The pair is fluctuating sharply to retest the breached level once again, accompanied by negative signs appearing through momentum indicators; pointing to a bearish intraday trend shown in yesterday’s reports that we recommend reviewing. The first required step is represented in stability below 1.2175 and chiefly targets 1.2000. This points out that the breach of 1.2360 could make the intraday direction rebound upwards.
The trading range for today is among the key support at 1.2000 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.EUR


GBPUSD
The pair moved strongly  upwards within the ascending channel formation shown in the four-hour chart above, naturally trading within this channel to near the resistance level. We expect the pair to head towards achieving the bearish intraday direction; mainly targeting the retest of the strength of 1.4530. Momentum indicators support expectations of a downside move.
The trading range for today is among the key support at 1.4485 and the key resistance at 1.4850.
The short term trend is to the downside as far as 1.5590 remains intact with targets at 1.3800.GBP


USDJPY
The pair is still trading in a stable manner below the broken support level that became resistance at 91.45, while the daily closing was below it. Stochastic is still giving off negative signs ; thus making us hold onto our previous expectations that point to an expected bearish trend today; the first key target will remain at 90.00.
The trading range for today is among the key support at 90.00 and the key resistance at 92.30.
The short term trend is to the downside as far as 101.65 remains intact with targets at 82.60.JPY


USDCHF
The pair managed to achieve a sharp downside trend but managed to halt at touching support for the ascending short term channel. Meanwhile, ideal trading still remains within the current upside channel, due to positive signs appearing through momentum indicators. We expect a bullish intraday trend; targeting mainly 1.1730 then 1.1800, where these expectations will prevail is trading remains intact above 1.1465.
The trading range for today is among the key support at 1.1465 and the key resistance at 1.1780.
The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2000.CHF


USDCAD
After the mixed trades the pair had done yesterday, it managed to stabilize today at the suggested bullish technical pattern’s neckline at 1.0550. The pair now is attacking this level, although the negativity of momentum indicators could impede building a base above the neckline, an essential factor to pave the way towards achieving the bullish intraday direction; the first main target is at 1.0675. Keep in mind that achieving stability above 1.0465 will maintain chances of the suggested scenario being achieved intact.
The trading range for today is among the key support at 1.0465 and the key resistance at 1.0675.
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