Major Currencies’ Midday Report 07/6/2010

EURUSD

The pair moved upwards to retest 1.2040 shown in our weekly report. Our previous expectations will remain intact in the overall predicted bearish direction today; targets start at 1.1900 and require four-hour closing below 1.2040 to prevail.
The trading range for today is among the key support at 1.1845 and the key resistance at 1.2100.
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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 trading to the upside since this morning in an attempt to complete the suggested bearish technical pattern mentioned in our weekly report. Momentum indicators support the pair’s upside movement and therefore we expect to witness a bullish intraday correction that will be followed by resuming the expected bearish trend over short term basis. The breach of 1.4595 could cause more upside movement that might fail the suggested scenario.
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The trading range for today is among the key support at 1.4335 and the key resistance at 1.4595.
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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 has currently moved to the upside yet hit the 50 MA supported by negative signs on momentum indicators. The suggested scenario will prevail if we do not witness a clear breach of 92.90.
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The trading range for today is among the key support at 90.00 and the key resistance at 92.90.
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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 gradually descending due to the negative momentum and nearing the support for the ascending channel around 1.1600. The 50 MA is supporting the ascending channel and therefore we hold onto our expectations in the weekly report as far as the pair does not stabilize below 1.1480.
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The trading range for today is among the key support at 1.1480 and the key resistance at 1.1735.
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The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2295.CFH


USDCAD
The negative momentum on indicators has started to affect the pair achieving some bearish movement that is close to retesting 1.0565 previously breached. We expect a bullish intraday trend, where its targets start at 1.0675 then 1.0740 and require a base built above 1.0510.
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The trading range for today is among the key support at 1.0510 and the key resistance at 1.0740.
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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