Major Currencies’ Midday Report 02/ August /2010

EURUSDThe EUR/USD pair ascended since this morning, despite the clear overbought signs from the momentum indicators. We are waiting for the pair to touch the 1.2990 levels before completing its intraday bullish direction, where stability above those levels is vital to achieve these expectations.
eur
The trading range for today is among the key support at 1.2990 and key resistance now at 1.3190..The general trend over short term basis is to the downside targeting 1.1700 as far as areas of 1.3770 remain intact.


GBPUSDThe GBP/USD pair proceeds with its bullish direction, where it’s approaching the ascending channel’s resistance levels. The momentum indicators continue on signaling a clear overbought area, accordingly, putting downside pressures on the pair to depreciate within the mentioned ascending channel. Observing trading is recommended for the remainder of today, especially as the pair touches the mentioned resistance level in order to determine its directiongbp
The trading range for today is among the key support at 1.5715 and key resistance now at 1.6070..The general trend over short term basis is to the downside targeting 1.3800 as far as areas of 1.5855 remain intact.


USDJPYThe pair is currently approaching a pivot resistance level at 86.65 accompanied by the Stochastic Oscillators movement towards overbought areas. We expect a downside intraday direction which will initiate targets at 85.95 that requires stability below 87.65.jpy
The trading range for today is among the key support at 85.95 and key resistance now at 87.65..The general trend over short term basis is to the downside targeting 82.60 as far as areas of 101.65 remain intact.


USDCHFThe pair faces difficulties in breaching the pivot support level at 1.0395 affected by the positive signs from the momentum indicators, but the MA 50 level averts the pairs movements, accordingly, our morning scenario – weekly report – is still intact that requires stability below 1.0560 in order to achieve the pair’s targets.chf
The trading range for today is among the key support at 1.0350 and key resistance now at 1.0560..The general trend over short term basis is to the upside targeting 1.2295 as far as areas of 1.0200 remain intact.


USDCADThe pair settled below the neckline at 1.0275, activating our morning scenario that was suggested in our weekly report. From there we expect a downside intraday direction with targets at 1.0135, but in order to achieve those expectations, a four-hour closure below 1.0275 is required.cad
The trading range for today is among the key support at 1.0135 and key resistance now at 1.0300..The general trend over short term basis is to the upside targeting 1.1485 as far as areas of 0.9925 remain intact.


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