Major Currencies’ Morning Report 07/ July /2010

EURUSDThe pair was able to surpass 1.2600 to achieve its highest level yesterday around 1.2660, but due to the negative pressure on the pair to attempt some bearish correction; therefore we can expect to build a base on 1.2540 – 23.6% Fibonacci from the last ascend that started from 1.2150– before resuming the bullish direction over intraday basis. The key targets are around 1.2780, but keep in mind that the breach of 1.2470 holds the keys to make our suggested scenario fail.EUR
The trading range for today is among the key support at 1.2470 and the key resistance at 1.2780.

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The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.

GBPUSD

The pair was not able to build a base above the key resistance of 1.5180 and has descended once again due to overbought signs appearing on the four-hour interval. We expect the pair could touch 1.5080 that represents the meeting point between 38.2% Fibonacci for the last bullish wave with SMA 50, followed by resuming the expected bullish intraday trend as targets start with attacking the key resistance that is currently descending to 1.5170, and then heads towards 1.5300. At the same time, keep in mind that the breach of 1.5080 will activate the bearish technical pattern which will lead to a direct bearish move towards 1.5000 – 1.4955 areas.GBP
The trading range for today is among the key support at 1.5000 and the key resistance at 1.5300.
The short term trend is to the downside as far as 1.5590 remains intact with targets at 1.3800.

USDJPYThe sideway range continues gripping the pair’s trading as shown above, where the positivity of momentum indicators will add strength to support for this range at 87.30. In overall, our previous expectations will remain intact as we expect a bearish intraday trend that will start with the breach of 87.30 to pave the way towards 86.60 then 85.35. Keep in mind the importance of trading below 88.00 – 88.40 to insure achieving the suggested scenario.JPY
The trading range for today is among the key support at 85.80 and the key resistance at 88.40.

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The short term trend is to the downside as far as 101.65 remains intact with targets at 82.60.

USDCHF
The pair stabilized below support for the previously breached symmetrical triangle pattern to currently touch resistance for the bearish short term channel at 1.0630; therefore we expect a bearish trend today supported by stability below the MA 50, where technical targets start at 1.0500. We point out that these expectations depend on stability below 1.0670 – 1.0690 to prevail.CHF
The trading range for today is among the key support at 1.0425 and the key resistance at 1.0700.

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The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2295.

USDCAD
The pair was able to breach the awaited support yesterday at 1.0555 nearing closely primary targets around 1.0470, while quickly rebounding to the upside due to the effect of the MA 100 that forms strong support in front of the pair’s descend. We see that current trading will retest breached support and therefore we can expect a bearish trend over an intraday basis; targets start at 1.0470 then 1.0405. Keep in mind that the breach of 1.0580 and building a base above it will postpone the suggested scenario.CAD
The trading range for today is among the key support at 1.0405 and the key resistance at 1.0670.

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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
[email protected]
www.ecpulse.com