Daily Report, Major And Cross Currencies: May 23, 2012

EUR/USD

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Just 20 pips separated between the previous session`s high and the proposed entry point at 1.2700 where the pair has slipped again touching the technical objective hinted since the start of this month at 1.2625. The negativity on Stochastic should ease the path towards the psychological level of 1.2500. To recap, we keep our morning anticipations unchanged for the rest of the day ; noting that, more acceleration could be seen with a break below 1.2575.
 
The trading range for today is among key support at 1.2460 and key resistance at 1.2890.
 
The general trend over short term basis is to the downside targeting 1.1865 as far as areas of   1.3550 remain intact.
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GBP/USD
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The pair has dropped sharply affected by the solidity of SMA 100 and SMA 200 as we discussed this morning. Stability below 38.2% Fibonacci level and the bearishness appearing on Stochastic -despite being close to oversold territories- encourage us to keep our morning predictions intact for the rest of the day . Eyes should be now on 23.6% Fibonacci level.
 
The trading range for today is among key support at 1.5575 and key resistance at 1.6000.
 
The general trend over short term basis is to the downside targeting 1.4225 as far as areas of 1.6875 remain intact.
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USD/JPY
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Negatively influenced by the three technical catalysts discussed in details this morning-check the morning report- the pair is gradually clearing the key levels of support between 79.55 and 79.25 as seen on the provided daily chart. Our morning scenario remains valid and eyes are now on 78.20 zones. On the upside, 80.30 should hold to protect bears.
 
The trading range for today is among key support at 77.90 and key resistance now at 80.75.
 
The general trend over short term basis is to the upside targeting 87.45 as far as areas of  75.20 remain intact.
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USD/CHF
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The pair continued rallying upwards above the upper line of Keltner channel as seen on the provided daily chart. Some technical analysts use this sign-stability beyond Keltner channel`s lines- as overbought or oversold sig but it also shows the strength of the trend. Hence, we believe that the bullishness will continue and once the pair breaches 0.9500 clearly, the path will be cleared towards 0.9590 followed by 0.9660.
 
The trading range for today is among key support at 0.9280 and key resistance at 0.9660.
 
The general trend over short term basis is to the upside targeting  0.9950 as far as areas of 0.8850 remain intact.
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USD/CAD
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The pair barely moved since morning, trading around the same levels. We would like to see a break accompanied with consolidation above 1.0230 key resistance to look for an extension of the current bullish wave.

The trading range for today is expected among the key support at 1.0100 and resistance at 1.0320.

The short term trend is to the upside   targeting 1.0320 with steady daily closing above 0.9900.
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AUD/USD
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Aussie maintains the bearish bias holding below 0.9800 resistance, thus the overall bearish bias remains intact, accordingly we hold onto our morning expectations , however, for the intraday bearish bias to remain dominant 0.9800 should limit any rally.

The trading range for today is expected among the key support at 0.9700 and resistance at 0.9885.

The short term trend is to the downside targeting 0.9400 with steady daily closing below 1.0240.
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NZD/USD
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The pair found support at 0.7460-0.7470, the level is main barrier towards further downside towards November’s 2011 low at 0.7369. Thus we prefer to continue monitoring price action around this key level.

The trading range for today is expected among the key support at 0.7465 and resistance at 0.7700.    

The short term trend is to the downside targeting 0.7365 with steady daily closing below 0.8100.
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Technical Crosses

GBP/JPY
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The pair turned higher today breaching 125.65 yet the daily closing was below 126.30 risk limit. The pair started the daily with a clear downside bias and returned below 125.65. Therefore, we hold onto our intraday bearish expectations today targeting mainly 123.50 and require stability below 125.65.

The trading range for today is among the key support at 123.55 and key resistance at 127.10.

The general trend over short term basis is to the downside targeting  112.00  as far as areas of 150.00 areas remain intact.
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EUR/JPY
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The pair consolidated at 102.00 from where it reversed to the downside and that keeps the intraday bearish scenario for today valid . The targets start at 99.20-98.90 and require the breach and stability below 100.50 to activate our expectations.

The trading range for today is among key support at 98.20 and key resistance now at 102.00.

The general trend over short term basis is to the downside targeting 94.80 as far as areas of 132.30 remain intact.
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EUR/GBP
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The pair retested 0.8045 yesterday and ended the day above it, nevertheless, the day started below this level again which gives two conflicting signals. The breach of 0.8045 keeps the effect of the previously suggested positive pattern intact and will push the pair higher, while a breach below 0.8025 will drive the pair directly towards 0.7960. Therefore, we need to observe the pair around the mentioned levels that will define the move for today.

The trading range for today is among the key support at 0.8045 and key resistance now at 0.8170.

The general trend over short term basis is to the upside targeting 1.0370 as far as areas of 0.7785 remain intact.
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