Daily Technical Report: Major And Cross Currencies - June 12, 2013

EUR/USD - European Session
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The pair achieved more gains and moved to the upside. benefiting from stability above 1.3225 as we think the bullish move might extend. Upside targets reside areas around 78.6% correction at 1.3505, then 88.6% at 1.3605 levels. Trading above 1.3225 keeps the possibility of the upside move valid during the upcoming period.

The trading range for today is among the key support at 1.3170, and key resistance at 1.3505.

The general trend over short term basis is to the upside targeting 1.3600, as far as areas of 1.2970 remain intact.

GBP/USD
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The pair managed to stabilize above 1.5605 levels which is positive and might extend the upside move toward 1.5685 then 1.5670 -113% and 127.2% Fibonacci-Linear Regression Indicators supports bullishness; a breakout below 1.5535 weakens the possibility of the upside move.

The trading range for today is among key support at 1.5535, and key resistance at 1.5800.

The general trend over short term basis is to the upside as far as areas of 1.5150 remain intact, targeting 1.5975.

USD/JPY
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The pair dropped yesterday, touching levels close to 95.50 support then rebounded to the upside. This is the second failed attempt at a four-hour closing above the referred to level. By examining the technical indicators, we find that Stochastic is showing a positive crossover and an upside move, but Linear Regression Indicators are still negative. We prefer to remain neutral for now, waiting for new confirmation signals.

The trading range for today is among key support at 95.00 and key resistance at 98.05.

The general trend over short term basis is to the downside as far as areas of 103.50 remain intact, targeting 93.50.

USD/CHF
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We will consider the pair’s movement to the downside from the top at 0.9838 levels as AB=CD bearish harmonic Pattern; the pair is consolidating below 88.6% correction of CD Leg, and below the harmonic support connecting between bottom A and C which is negative and might push the pair further to the downside. A breakout below 0.9205 is significant and supports the bearish momentum, the bearish outlook is further supprted by negativity on Linear Regression Indicators.

The trading range for today is among key support at 0.9125 and key resistance at 0.9345.

The general trend over short term basis is to the downside stable at levels 0.9775 targeting 0.8860.

USD/CAD
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The pair dropped again after failing to stabilize above 1.0215, pushing the pair to trade again between 50% and 61.8% correction as shown on graph, accompanied by a technical contradiction on Linear Regression Indicators. Stochastic is attempting to crossover positively, but the RSI is still trading below line 50. We will remain neutral waiting for confirmation signals.

The trading range for today is between the key support at 1.0100, and the key resistance at 1.0270.

The general trend over short term basis is to the upside, with steady daily closing above levels 0.9800 targeting 1.0485.
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AUD/USD
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We expected negativity on Tuesday after the AUD/USD confirmed its stable position with 4-hour closing below 0.9360. Examining the daily candlestick, however, we found the AUD/USD has returned to above that level, which represents 261% Fibonacci. The pair is also above Linear Regression Indicators while the Stochastic demonstrates a positive bias. All these technical events make us resort back to positivity, provided that the uptrend runs steadily above 0.9305.

Trading range expected today is between the key support at 0.9260 and the key resistanceat 0.9550.

Short-term trend is downside, targeting 0.9000 if 1.0000 remains intact.

NZD/USD
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The NZD/USD rebounded strongly upside after dropping on Tuesday. However, it was limited in zones below 0.7925. The path is clear for the downtrend to return to the scene, especially with the negativity of Linear Regression Indicators. On the other end, Stochastic is reflecting a positive bias but NZD/USD must settle below 0.7925, 61.8% correction, in order to confirm the return of the bearish trend.

The trading range expected today is between the key support at 0.7715 and the key resistance 0.8000.

The short-term trend is downside, targeting 0.7715 if 0.8400 remains intact.