Major Currencies’ Morning Report 09/ September /2010

EURUSDSMA 50 was able to halt the pair’s upside movement yesterday, where it managed to achieve a daily closing below the pivotal levels of 1.2775. This maintains the suggested bearish direction intact, supported by negative signs appearing on Stochastic.  From here, we expect a bearish intraday direction that will start with a clear breach of 1.2680 to pave the way towards 1.2520 initially. Keep in mind the importance of the daily closing below 1.2775 to maintain chances of achieving expectations.eur
The trading range for today is among the key support at 1.2520 and the key resistance at 1.2775.The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.


GBPUSD
The pair stabilized trading above resistance for the bearish short term channel that has currently turned into support at 1.5410, alongside building a base above SMA 50; however, the retesting level 1.5555 will remain intact in front of the pair’s attempts to ascend in line with clear negativity appearing on momentum indicators. Thus, these conflicting signs make us recommend keeping an eye on trading today, specifically the daily closing for support levels 1.5410 and resistance 1.5555 to maintain assuring signs for a specific direction.gbp
The trading range for today is among the key support at 1.5290 and the key resistance at 1.5620.The short term trend is to the downside as far as 1.6070 remains intact with targets at 1.3800.


USDJPY
The pair retested the level mentioned yesterday at 84.05 to start the suggested bearish wave that was previously suggested, supported by the negative direction appearing on Stochastic; alongside stability below the MA 50. These factors make us expect a bearish intraday direction that targets chiefly the key support level for the current bearish channel at 82.40, while resuming it requires the four hour closing below 84.05.jpy
The trading range for today is among the key support at 81.60 and the key resistance at 85.05.The short term trend is to the downside as far as 91.55 remains intact with targets at 79.60.


USDCHFThe pair was able to breach resistance for the falling wedge shown yesterday trading in a sideway manner, where it is finding a hard time in starting the awaited bullish wave due to negative effect of momentum indicators; therefore we may witness some fluctuation to retest the breached resistance that turned into support that currently descends towards 1.0060 before resuming the expected bullish trend over an intraday basis that targets mainly 1.0210. Keep in mind the four hour closing is below 1.0060 will weaken chances of achieving these expectations and postpone them.chf
The trading range for today is among the key support at 0.9955 and the key resistance at 1.0210.The short term trend is to the upside as far as 0.9955 remains intact with targets at 1.1120.


USDCAD
The pair was not able to surpass the retest level at 1.0485 after achieving halfway towards the awaited targets at 1.0565 as it sharply descends due to the affect of the interest rate regarding the Canadian dollar yesterday; however, this downside movement halted at pivotal support 1.0345 – 76.4% Fibonacci – as the pair moves in a sideway range shown below. A strong breach of the bullish channel and the retest level holding its stance, accompanied by stability of 76.4% Fibonacci in line with positive momentum appearing in the four hour chart. Thus, these factors make us recommend observing trading today to receive insuring signs of a specific direction appearing through the daily closing for pivotal levels that represents support 1.0345 an resistance 1.0465.cad
The trading range for today is among the key support at 1.0245 and the key resistance at 1.0505.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