Major Currencies’ Midday Report 09/ July /2010

EURUSDThe pair is currently trading at the support for the rising wedge shown in our morning report, where it is presently at 1.2660; while Stochastic is gradually unloading the negative momentum. Accordingly we expect the start of the bullish intraday direction from current levels; targets start at 1.2730 then 1.2840. Keep in mind that the breach of 1.2660 will lead to a direct descend reaching 1.2570, while the bullish short term direction remains intact.
EUR
The trading range for today is among the key support at 1.2570 and the key resistance at 1.2840.The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.


GBPUSDThe pair moved to the upside surpassing the pivotal resistance that has currently turned into support at 1.5150. Stochastic is gradually losing bullish momentum and thus keeping chances of returning to build a base on the support for the sideways range at 1.5080, before activating the morning scenario. We hold onto our morning expectations if we do not witness a clear breach of 1.5080.GBP
The trading range for today is among the key support at 1.5050 and the key resistance at 1.5360.The short term trend is to the downside as far as 1.5590 remains intact with targets at 1.3800.


USDJPYThe pair is nearing the awaited retest level at 88.20 with ongoing negative signs on momentum indicators; therefore, the suggested morning scenario will remain intact that primarily require a base built above 87.80.JPY
The trading range for today is among the key support at 87.00 and the key resistance at 90.00.The short term trend is to the downside as far as 101.65 remains intact with targets at 82.60.


USDCHFThe pair touched this morning’s suggested resistance level, from where it descended to activate the expected bearish intraday direction scenario. We await the bearish targets that essentially require four-hour closing below 1.0560.CHF
The trading range for today is among the key support at 1.0350 and the key resistance at 1.0665.The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2295.


USDCADThe pair managed to strongly breach the awaited support level at 1.0405 activating the morning scenario and currently near the first key target around 1.0305. Stochastic provided a negative crossover that supports our morning expectations that we still expect further bearishness over intraday basis but essentially requires stability below 1.0480.CAD
The trading range for today is among the key support at 1.0265 and the key resistance at 1.0550.The short term trend is to the upside as far as 0.9925 remains intact with targets at 1.1485.


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