Major Currencies’ Midday Report 03/ August /2010

EURUSDThe pair built a base on 1.3145 and rushed towards the pivotal resistance at 1.3250 – 76.4% Fibonacci-. More bullish intraday movement is expected, where we may witness some fluctuation around the mentioned level due to the negativity  on momentum indicators. Keep in mind the importance of the mentioned resistance level in confirming the pair’s short term direction. eur
The trading range for today is among the key support at 1.3105 and the key resistance at 1.3450.The short term trend is to the downside as far as 1.1700 remains intact with targets at 1.3770.


GBPUSD
The pair touched the resistance for the bullish channel that has currently ascended towards 1.5965. Momentum indicators are showing negative signs that may push it to retest the areas mentioned this morning. Overall, we recommend observing trading specifically especially around the resistance 1.5965 and support 1.5855.gbp
The trading range for today is among the key support at 1.5705 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.


USDJPY
The pair descended to touch the first awaited target around 85.95 with more negative pressure from the bearish trend on momentum indicators; therefore, we expect more bearish intraday movement that requires the next step to be a clear breach of 85.95 to head towards 85.00 – 84.70. Keep in mind the importance of building a base below 87.25 to insure achieving the awaited bearish trend today.jpy
The trading range for today is among the key support at 85.00 and the key resistance at 87.65.The short term trend is to the downside as far as 91.55 remains intact with targets at 82.60.


USDCHF
The pair continues stabilizing below the pivotal support at 1.0395; thus, maintaining the suggested morning scenario intact. Therefore, we hold onto our morning expectations intact that will not fail unless 1.0470 is breached.chf
The trading range for today is among the key support at 1.0200 and the key resistance at 1.0560.The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2295.


USDCAD
The pair neared the retest level at 1.0265, where the 50 MA halted it’s ascend around 1.0255. Stochastic seems to clearly be heading to the downside; thus maintaining our morning expectations. Keep in mind that the daily closing below 1.0265 is required for our expectations to prevail. cad
The trading range for today is among the key support at 1.0040 and the key resistance at 1.0340.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