Major Currencies’ Midday Report 23/ July /2010

EURUSD
The pair attempted to breach the support for the rising wedge once again, but reversed strongly to the upside with clear bullish momentum. We recommend observing trading today, especially as we await the stress tests results later today which might cause volatile trading. EUR
The trading range for today is among the key support at 1.2730 and the key resistance at 1.3030..The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.


GBPUSD
The pair respected the suggested morning scenario, off by 5 points from the first awaited target at 1.5455. Some fluctuation is expected after touching the target, but overall we expect more bullishness over intraday basis. It is vital that a base is built above 1.5220 to maintain chances of achieving the bullish move.GBP
The trading range for today is among the key support at 1.5160 and the key resistance at 1.5525..The short term trend is to the downside as far as 1.5590 remains intact with targets at 1.3800.


USDJPY
The pair has gradually revisited the retest level mentioned this morning around 87.30, accompanied with ongoing negative signs from momentum indicators. Therefore, our expectations  remain intact as long as stability is below 88.10.JPY
The trading range for today is among the key support at 85.00 and the key resistance at 88.10..The short term trend is to the downside as far as 101.65 remains intact with targets at 82.60.


USDCHF
The pair neared to touch the sideway support at 1.0390, where we see that the pair is gradually losing bullish momentum as stochastic nears overbought areas. Our expectations remain intact, but keep in mind that the breach of 1.0390 will pave the way towards resuming the bearish trend.CHF
The trading range for today is among the key support at 1.0280 and the key resistance at 1.0645..The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2295.


USDCAD
The pair strongly rushed to the upside touching 1.0420 – 1.0435 but reversed to the downside, where we see the start of the expected bearish intraday direction. We hold onto our expectations as far as do not witness a clear breach for 1.0510.CAD
The trading range for today is among the key support at 1.0180 and the key resistance at 1.0580..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