Major Currencies’ Morning Report 04/6/2010

EURUSD

The 50 MA stood as a strong barrier in front of the pair’s attempts to ascend so it may sharply drop towards the pivotal 1.2175. Trading is within the bearish technical pattern, which makes us expect a bearish direction over intraday basis; the first target is at 1.2000, but keeping in mind that stability above 1.2290 fail the bearish expectations. Trading today might be affected by the release of the US jobs report.
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 did not succeed in breaching 61.8% Fibonacci correction in a second attempt to reverse bearishly  and near the support for the current upside channel; we can see signs for a a bearish pattern near completion with the expected neckline at 1.4550. We expect a bearish direction over intraday basis; starting with the breach of the mentioned neckline towards 1.4420. This points out that the breach of 1.4730 will pave the way towards achieving more upside movement within the ascending channel shown above.
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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 continued its upside move achieving a daily closing above 76.4% Fibonacci correction at 92.50; additionally insuring the current bullish trend’s continuation. We may witness some fluctuation and a minor bearish correction before resuming the expected bullish intraday direction that targets initially 93.60 – 94.00. Keep in mind that stability requires the daily closing to remain above 91.60 for the suggested scenario to prevail.
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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
After fluctuating near the retest level for the previously breached ascending channel, the daily closing stabilized below it at 1.1580. Stochastic is showing negative signs that make us expect a bearish intraday trend;targeting 1.1390 and requiring the four hour closing to remaining below 1.1580.
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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 continued to ascend today to retest 1.0435, shown above, within the downside channel that represents the current intraday direction. Stochastic is showing negative signs that make us expect a bearish intraday direction targeting 1.0295; though keep an eye on the pair’s movement when it arrives at the level. The short term trend is still bullish within the main upside channel, as the downside movement is normal within the channel.
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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