Major Currencies’ Midday Report 08/6/2010

EURUSD

The pair is close to touching the awaited level where it has currently descended to 1.2005; a minor bearish technical pattern has formed at 1.1910 and we expect it to effect trading today. Our expectations for a bearish intraday move will start with the breach of the mentioned support towards 1.1815. The breach of 1.2005 will weaken chances of achieving the suggested scenario.
EUR
The trading range for today is among the key support at 1.1815 and the key resistance at 1.2100.The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.


GBPUSD

The pair has started the bearish wave mentioned in our morning report before touching the awaited area to build its base by a marginal difference. A bearish pattern has been completed and therefore we expect further intraday bearishness for the rest of the day; requiring first stability below the neckline at 1.4395 and then head towards 1.4230 and 1.4030.GBP
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.


USDJPY
The pair managed to build a base on 91.90 to start the suggested bearish wave mentioned in our morning report. Presently, the pair is nearing the support level for the minor ascending channel at 91.10. This level is required to be breach to insure the expected bearish intraday direction for today, while Stochastic is still supporting these expectations.JPY
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.


USDCHF
The pair has surpassed the support for the ascending channel at 1.1600 but the 50 MA stands as strong support in front of more bearish movement. Stochastic is showing oversold signs and encouraging us to maintain our morning expectations which require a base to be built above 1.1480.CHF
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.


USDCAD
The pair touched the pivotal support at 1.0510 once again and has formed the neckline for a possible bearish technical pattern that may change the pair’s intraday direction if it manages to stabilize below it. Our morning expectations remain intact but keep in mind the importance of stability above the support between 1.0510 – 1.0470 for our expectations to prevail.CAD
The trading range for today is among the key support at 1.0470 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.


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