Major Currencies’ Midday Report 09/6/2010

EURUSD

The pair neared the awaited retest level that has currently descended towards 1.1990, where our morning expectations remain intact; while keeping in mind that a four-hour closing above the mentioned level wil l trigger a bullish intraday reversal.
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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 strongly rushed to the upside after touching the pivotal support mentioned previously at 1.4395, where it currently inches closer to the resistance level for the descending channel shown above. Stochastic is showing overbought signs and thereby encouraging us to maintain our previous expectations for a bearish intraday move that requires a base to be built below 1.4500 then breach 1.4395.
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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 pair is trading within a narrow range since this morning and is still wedged between 91.90 and 90.95. No evident change is seen and our morning expectations remain intact and will not fail unless 92.90 is breached.
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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 attacking the support for the sideways range at 1.1480 due to the negative effect of trading below the 50 MA, which shows us that the bearish technical pattern will be activated if the pair successfully builds a abase below the mentioned support level. We still see that chances of achieving the expected bullish intraday move will prevail if we do not witness a break and stability below 1.1480.
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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’s trading is stuck within a very narrow range since this morning, which was not able to breach 1.0510 until now. Stochastic is still showing positive signs that maintain our bullish intraday expectations, which will not fail unless the four hour closing is below 1.0470.
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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