Major Currencies’ Midday Report 12/ July /2010

EURUSDThe pair is trading around the morning mentioned pivotal support level at 1.2565 in an attempt to build a base and start the suggested bullish wave. Our morning expectations remain intact, supported by Stochastic but keep in mind that the breach of 1.2540 and stabilizing below it holds the keys to fail our expectations and lead a bearish movement to initially reach 1.2470.
eur
The trading range for today is among the key support at 1.2470 and the key resistance at 1.2735..The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.


GBPUSDThe pair strongly descended due to the effect of the bearish technical pattern shown above that has been activated after breaching the support for the sideways range at 1.5080. The bearish targets for this pattern have been achieved and therefore we still see that the expected direction for today is bullish, where its targets start at 1.5080 then 1.5135 and require the daily closing above 1.4960 to prevail.gbp
The trading range for today is among the key support at 1.4855 and the key resistance at 1.5135..The short term trend is to the downside as far as 1.5590 remains intact with targets at 1.3800.


USDJPYThe pair reversed trading to the downside due to the negativity on momentum indicators and the strength of the resistance levels around 89.00, where it has neared 88.20 once again. No notable change is witnessed on our weekly scenario; therefore, the bearish direction is expected for today as its main targets start around 87.00.jpy
The trading range for today is among the key support at 87.00 and the key resistance at 89.55..The short term trend is to the downside as far as 101.65 remains intact with targets at 82.60.


USDCHF
The pair strongly rushed to the upside surpassing the 50 MA and thereby it’s important to observing the daily closing around this level (at 1.0645) mentioned in our weekly report. The expected formation for the bullish technical pattern could dominate the pair’s trading for the upcoming days. We recommend observing trading today especially after the daily closing around 1.0645.chf
The trading range for today is among the key support at 1.0500 and the key resistance at 1.0755.The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2295.


USDCAD
The pair stabilized below 61.8% Fibonacci correction forming the current resistance level at 1.0340, despite ongoing bullish signs on momentum indicators. Therefore, we hold onto our morning expectations that will remain intact as long as a base is built below 1.0440.cad
The trading range for today is among the key support at 1.0265 and the key resistance at 1.0405..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