Major Currencies’ Morning Report 09/6/2010

EURUSD
The pair is trading within the secondary ascending channel that is forming the flag pattern, where we expect it to lead to a retest of the previously broken support level that has descended towards 1.1995, as it naturally targets resuming the main bearish trend.

Stochastic is moving close to overbought areas and thereby encouraging us to expect a bearish trend to be resumed today; main targets start at 1.1785 and require building a base to achieve the four-hour closing below 1.1995.

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The trading range for today is among the key support at 1.1785 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 attempted to breach the pivotal support shown yesterday at 1.4395, although the effect of the positive momentum is pushing the pair to ascend within the short term downside channel, which controls the current trading. Stochastic is close to losing the positive momentum and therefore we expect a bearish intraday trend; starting with the breach of the mentioned support and head towards 1.4230 as a first target.
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The trading range for today is among the key support at 1.4230 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 channel is currently ascending and dominating the pair that is trading below SMA 50 – current value is at 91.90 – where support for the ascending channel has stopped at 90.95. Meanwhile, 61.8% Fibonacci correction supported by the SMA 50 held its stance and therefore we expect a bearish intraday direction that start with the breach of 90.95 and heads towards 90.00 then 89.55. Chances of achieving an expected bearish trend that requires stability below 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

More negative pressure on the pair will cause sideway support at 1.1480 although this level is showing stability that will push the pair to the upside due to positive signs that appear on momentum indicators. From here, we expect an initially bullish intraday direction to retest the broken support that has turned into resistance at 1.1625. It is vital to keep an eye on the pair when it reaches this level to insure the upcoming direction more accurately, where the breach of it will insure the pair’s return within the bullish trend within the previously breached ascending short term channel.
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The trading range for today is among the key support at 1.1420 and the key resistance at 1.1695.
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The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2295.
CHF

USDCAD
The pair stabilized trading below pivotal support 1.0510; thus pointing out that the minor bearish technical pattern has been formed, although the SMA 100 is standing as strong support in front of achieving more bearish movement. Stochastic is showing bullish signs that support  SMA and protect the previously expected bullish trend; thus encouraging us to expect a bullish intraday direction; targeting first 1.0675, but keep in mind the importance of the four-hours closing below 1.0470 and will cause ascending attempts to fail.
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The trading range for today is among the key support at 1.0390 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