Daily Technical Report: Major And Cross Currencies - June 5, 2013

EUR/USD - European Session
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The pair is still trading positively, which is normal in light of stabilizing above 61.8% correction of CD Leg of the bullish harmonic Butterfly Pattern residing at 1.3045. Trading above the referred to level triggers a new attempt to breach 78.6% correction at 1.3110 to move towards 1.3150 levels, and perhaps 1.3200.

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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Linear Regression Indicator 34 became positive, accompanied by stabilizing above 50% correction at 1.5305 which is positive, supporting the possibility of extending the bullish wave to retest 61.8% correction at 1.5375 – 1.5380. Breaching 61.8% correction might trigger another push to the upside towards 78.6% correction, residing around 1.5480. Positivity for today’s session requires stability above 1.5235, but we prefer to see the pair stabilizing above 1.5305 to further support this outlook.

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 remain intact, targeting 1.4355.
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USD/JPY
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By examining the four-hour interval graph, we notice that a descending channel has dominated the pair’s trading since the top formation around 103.7 and is now stable below 99.85, suggesting extending bearishness in a new attempt to test key support level of the overall ascending channel. Stochastic supports the negative expectations as trading below 100.40 will be considered negative today.

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 is currently trading below the second target of the bearish harmonic Butterfly Pattern, pushing it further to the downside towards testing resistance level of the descending channel that was breached before, in addition to testing 78.6% correction level at 0.9370. Stability below the second target at 0.9475 maintains the possibility of the bearish move during today’s session.

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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The pair moved to the upside, and failed to enter a descending wave due to stability of 1.0270 levels. It is now trading above 1.0300, maintaining the possibility of more attempts to the upside. Linear Regression Indicators supports our positive expectations intraday today.

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 a steady daily closing above levels 0.9800 targeting 1.0485.
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AUD/USD

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The AUD/USD failed to hold above 0.9650, weakening previously-proposed positivity. However, that doesn't confirm triggering a downtrend because it is stable above key 0.9535. Trading between the aforesaid levels compels us to adopt a neutral stance, especially as the relative strength index is inclined to negativity below the 50-point line and Stochastic is reflecting oversold signals.

Today's expected trading range is between the key support at 0.9535, and the key resistance 0.9725.

Short-term trend is downside, targeting 0.9400 if 1.0710 remains intact.
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NZD/USD
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The NZD/USD is still steady below 0.8065, 50% correction, despite rather volatile trading. Stability below that level is reason enough to make us hold on to our negative outlook, particularly as the pair trades below linear regression indicator 55, and LRI 34 is still negative.

Trading range expected today is between the key support at 0.7840, and the key resistance 0.8210.

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