Major Currencies’ Midday Report 22/ July /2010

EURUSD
The pair strongly rushed to the upside to attempt to surpass the retest for the support of the previously breached rising wedge, where it is heading towards the resistance level for the bullish channel that has returned to trade within. Stochastic is still showing negative signs that maintain our morning scenario intact if we do not witness stability above 1.2865. EUR
The trading range for today is among the key support at 1.2565 and the key resistance at 1.2925..The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.


GBPUSD
The pair strongly breached the retest level at 1.5220 surpassing the 50 MA , while Stochastic enters overbought areas. Our morning expectations remain intact, where the breach of 1.5355 will reverse the intraday trend to the upside. gbp
The trading range for today is among the key support at 1.4960 and the key resistance at 1.5355..The short term trend is to the downside as far as 1.5590 remains intact with targets at 1.3800.


USDJPY
The pair is gradually ascending due to the positivity on Stochastic, while we await the retest of 86.95. Our expectations will prevail as long as the four-hour closing is below 87.05.jpy
The trading range for today is among the key support at 1.4960 and the key resistance at 1.5355..The short term trend is to the downside as far as 1.5590 remains intact with targets at 1.3800.


USDCHFThe pair breached the support for the minor bullish channel shown below, due to the bearish technical pattern over four-hour basis. Momentum indicators are in oversold areas which might push the pair to move to the upside. Overall, we recommend observing upcoming trading to determine the direction more specifically.chf
The trading range for today is among the key support at 1.0400 and the key resistance at 1.0675..The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2295.


USDCAD
The pair breached the support for the rising wedge suggested this morning, where it managed to achieve the first target around 1.0435. Momentum indicators are providing oversold signs that may cause some fluctuation and a slight slant to the upside, before resuming the bearish intraday movement.cad
The trading range for today is among the key support at 1.0275 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
[email protected]
www.ecpulse.com