Major Currencies’ Midday Report 31/5/2010

EURUSD

The pair has been trading in a narrow range since this morning due to the holidays in some financial markets; therefore, our morning expectations remain intact supported by Stochastic.
The trading range for today is among the key support at 1.2135 and the key resistance at 1.2670.The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.EUR


GBPUSD
The pair is gradually heading upwards since this morning after 61.8% held against the bearish wave after breaching the support for the Rising Wedge shown in our previous reports. Thus, our morning expectations remain intact and will not fail unless a clear breach of 1.4340 is witnessed.The trading range for today is among the key support at 1.4390 and the key resistance at 1.4590.The short term trend is to the downside as far as 1.5590 remains intact with targets at 1.3800.GBP


USDJPY
The pair managed to calmly move to the upside since this morning nearing 61.8% Fibonacci correction, shown above. We still hold onto our suggested weekly scenario, where we think that the pair might decline over intraday basis with targets are at 90.00. It is vital that 92.30 remains intact to maintain these expectations.The trading range for today is among the key support at 90.00 and the key resistance at 92.30.The short term trend is to the downside as far as 101.65 remains intact with targets at 82.60.JPY


USDCHF
The pair is trading within a very narrow range since this morning with a slight bullish bias, accompanied by ongoing negative signs appearing on Stochastic. Therefore, our morning expectations remain intact if we do witness stability above 1.1640.The trading range for today is among the key support at 1.1440 and the key resistance at 1.1640.The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2000.CHF


USDCAD
The pair touched the resistance for the ascending channel shown in our weekly report this morning, which has currently descended towards 1.0500. Stochastic is still showing negative signs and therefore maintaining expectations for a bearish move today targeting mainly 1.0390.The trading range for today is among the key support at 1.0390 and the key resistance at 1.0595.The short term trend is to the upside as far as 0.9925 remains intact with targets at 1.1485.CAD


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