Major Currencies’ Morning Report 16/ June /2010

EURUSD

The pair succeeded in achieving the suggested scenario yesterday flawlessly breaching the neckline at 1.2295, while the daily closing is above it although it stands as a temporary barrier for the bullish intraday channel in front of the pair’s aspiration in attempting to push more due to negative signs appearing through momentum indicators.
EUR
We could witness some fluctuation and slanting towards some minor bearish correction to retest the mentioned neckline, butthe overall direction for today is bullish; targeting next 1.2450 – 1.2500. It is vital that stability is achieve above 1.2215 for the expected upside movement to continue.
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The trading range for today is among the key support at 1.2215 and the key resistance at 1.2500.
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The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.


GBPUSD
The pair was able to stabilize above the awaited to be breached resistance between 1.4770 – 1.4795, with a chain of the four hour candlestick closing above it and thereby insuring the activation of the suggested scenario yesterday of an upside move. This breach, alongside surpassing 61.8% Fibonacci correction, are factors that encourage us to expect a bullish intraday trend; first target is at 1.5000. Keep in mind that the overbought signs appearing through momentum indicators could cause some fluctuation and negative pressure on the pair.GBP
The trading range for today is among the key support at 1.4635 and the key resistance at 1.5045.
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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 continues to trade with ongoing trading near support for the ascending channel that has currently ascended to 91.35. The daily closing will stabilize above this level, thus maintaining previous expectations intact as we still see the expected direction to be bullish over an intraday basis, due to support from the positive signs from the stochastic, but the pair is surpassing the SMA 50 that will pave the way towards achieving the awaited targets for today and mainly around 93.30. It is vital that stability is achieve above 90.60 to achieve the suggested scenario.JPY
The trading range for today is among the key support at 90.60 and the key resistance at 93.30.
The short term trend is to the downside as far as 101.65 remains intact with targets at 82.60.

USDCHF
The pair is trading flawlessly within the downside correction channel shown yesterday, especially after achieving stability for the main retesting level at 1.1480. Touching support for the current channel is accompanied by positive signs that appear through momentum indicators that point to some minor bullish correction for now, but in overall we think that the direction is bearish over an intraday basis and the path will be opened if the pair succeeds in breaching 1.1280 – support for the downside channel -.The awaited targets will start at 1.1185 then 1.1115, where it requires stability below 1.1405 to prevail.CHF
The trading range for today is among the key support at 1.1115 and the key resistance at 1.1405.
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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 has neared to achieve the first awaited target around 1.0200 after successfully retesting 1.0335, but losing bearish momentum has halted the downside trend temporarily. Some kind of fluctuation is occurring now  due to the positive momentum appearing on the four-hour chart that may push the pair towards 1.0300 – 1.0335 as the maximum limit, before continuing the bearish intraday direction as we await to achieve the primary chief target around 1.0125. It is vital that the daily closing remains below 1.0385 is a vital factor to maintain chances of achieving the suggested scenario.CAD
The trading range for today is among the key support at 1.0125 and the key resistance at 1.0385.
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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