Major Currencies’ Morning Report 09/ August /2010

EURUSDThe pair is trading within a narrow range since this morning with a bearish bias due to the negative effect of momentum indicators. Our expectations remain intact, represented by the weekly report as we await the pair to touch the bullish channel’s support that currently ascended towards 1.3195. Stability below 1.3195 will weaken chances of resuming our expectations. EUR
The trading range for today is among the key support at 1.3110 and the key resistance at 1.3360.The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.


GBPUSD
The pair touched the support for the bullish short term channel at 1.5925 and rebounded to the upside. Stochastic provided a positive crossover that might push the pair to start a bullish wave, which is expected to build a base on the mentioned support level. For today, we can expect a bullish intraday trend that will start its targets at 1.6020 – 1.6070 requiring stability above 1.5865 to prevail.GBP
The trading range for today is among the key support at 1.5865 and the key resistance at 1.6070. The short term trend is to the downside as far as 1.6070 remains intact with targets at 1.3800.


USDJPYThe pair retested the previously breached support level at 85.70 to bearishly reverse; whereas the morning scenario has been activated. From here, our expectations remain intact as long as stability is below 86.35.JPY
The trading range for today is among the key support at 84.00 and the key resistance at 86.35.The short term trend is to the downside as far as 91.55 remains intact with targets at 82.60.


USDCHF
The pair is moving within a narrow range since this morning, where it is finding a hard time surpassing the minor resistance at 1.0400. The negative pressure continues appearing from the MA 50; therefore, we expect a bearish intraday trend for the remainder of trading, which requires a clear breach of 1.0340 alongside stability below 1.0440.CHF
The trading range for today is among the key support at 1.0200 and the key resistance at 1.0540.The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.1730.


USDCADThe pair is fluctuating around the retest level shown this morning at 1.0275, with some bullish bias affected by positive signs on Stochastic. The suggested morning scenario will be activated, where we await a bearish intraday direction as long as stability is below 1.0385.CAD
The trading range for today is among the key support at 1.0135 and the key resistance at 1.0385.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