Daily Technical Report: Major And Cross Currencies - June 4, 2013

EUR/USD - European Session

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The pair moved to the upside, touching the first extended target of the bullish harmonic Butterfly Pattern represented in 78.6% correction around 1.3110, and then consolidated above 61.8% of CD Leg at 1.3040. Trading above 1.3045 is positive, and stability above it might trigger an upside move eying further targets starting from 1.3150 then top C close to 1.3200. The upside move requires stability above 1.2990 today.

The trading range for today is among the key support at 1.2960, and key resistance at 1.3200.

The general trend over short term basis is to the downside, targeting 1.2560 as far as areas of 1.3270 remain intact.
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GBP/USD
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The upside move extended ignoring oversold signals on Stochastic. The possibility of extending the bullish move is related to stability above 1.5235, trading above it might extend the upside move in the upcoming period. RSI managed to breach line 50 to the upside, and the pair is stable above Linear Regression Indicators and accordingly, the upside move is still valid today.

The trading range for today is among key support at 1.5150, and key resistance at 1.5535.

The general trend over short term basis is to the downside as far as areas of 1.5770 remains intact, targeting 1.4355.
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USD/JPY
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The pair dropped yesterday, approaching key support level of the ascending channel. It then returned to trade again around 99.85 levels. The referred to level is considered an interval; Linear Regression Indicators are negative but the pair moved to the upside, affected by the momentum gained from levels close to the bullish key support. We need to remain neutral today, to see how the pair would react around 99.85 which we think will determine whether the pair would break the bullish key support or start a new upside wave.

The trading range for today is among key support at 98.05, and key resistance at 101.15.

The general trend over short term basis is to the upside as far as areas of 96.50 remain intact, targeting 105.60.
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USD/CHF
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The pair dropped sharply yesterday, affected by the bearish harmonic Butterfly Pattern and touched key resistance level of the descending channel that was breached earlier. The drop might be a retest for the resistance that turned to support. We are not sure, especially that the RSI is trading below 50 and Linear Regression Indicator 55 is trading with negative bias. We remain neutral for now to see how the pair would react between 0.9470 and 0.9370.

The trading range for today is among key support at 0.9315 and key resistance at 0.9610.

The general trend over short term basis is to the downside stable at levels 0.9775 targeting 0.8860.
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USD/CAD
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Hence, there is a clear classic technical contradiction and 1.0300 and 1.0270 levels define the trend, so we need to remain neutral for a while to see how the pair would react at those levels.

The trading range for today is between the key support at 1.0185 and the key resistance at 1.0540.

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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The AUD/USD rose on Monday and breached 0.9700. Despite the bearishness seen on Tuesday, the pair steadied above a support, an earlier breached resistance. With positive linear regression indicators, we expect to witness an upside movement in today's session, provided that the pair settles above 0.9650.

Trading range expected today is between the key support at 0.9535, and the key resistance 0.9860.

Short-term trend is downside, targeting 0.9400 if 1.0710 remains intact.
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NZD/USD

The S&P 500 Futures rose touching zones around 1637.00. However, the bullish trend still comes in the sidelines of an overall downside correction. We believe trading below 1655.25 will help maintain the potential downtrend valid.

Trading range expected today is between the key support 1615.25 and the key resistance 1673.50.

Short-term trend is downside, targeting 1595.00 as far as 1673.50 remains intact.
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GBP/JPY
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The GBP/JPY is rebounding after testing the bottom of the latest range-bound near 132.00. An initial overhead resistance resides at 153.35. A break above it should signal a retest of the top of this range around 154.70. We prefer remain neutral for now.
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EUR/JPY
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The EUR/JPY pair dipped slightly below the 130.00 level, but failed to settle below it. The pair is attempting to mover higher, facing an intraday resistance at 131.00-131.10, if it managed to extend above this resistance, we may see a retest of the 132.10 levels. We will move to sidelines for now, awaiting confirmation.
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EUR/GBP

The EUR/GBP pair extended losses yesterday towards 0.8500 key support level and our suggested re-entry level, where we look for price to resume the overall bullish breakout of the wedge pattern. We maintain our bullish stance.
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