Daily Market Technicals 21/12/2000

In the Asian session USDJPY opened the session at 112.80 having been driven to a 16-month high as falling share prices reinforced pessimism over Japan’s economy. The currency pair continued the move higher to set the daily high at 113.14 where speculators took profit. The pair traded in a 112.77/113.14 range and hovered around 113.00 going into the European session. EURUSD after a rally to the highs of the day (.9098), hovered around the same level the bulk of the session trading in a narrow .9070/99 range following an open at .9096. The currency is rumored to be well supported at .9080 around where it currently hovers. USDCHF opened the session at 1.6703 and remained quiet following Dollar selling that was fundamentally driven. The currency pair traded in a quiet 1.6701/42 attempting to re-establish direction following a five big figure slide over the course of this month. GBPUSD opened the session at 1.4765 and traded in a narrow 1.4741/83 range that saw the currency pair range trade about 1.4741/83. AUDUSD and NZDUSD opened the session at .5536 and .4397 and traded in .5523/36 and .4385/97 ranges respectively.

EUR-USD:

Target 0.9143 Long at 0.8950 Stop at 0.9035

Resistance:0.92000.91430.9099

Support:0.90400.90140.8950

Remains slightly below the new rally high of 0.9099 but while trade remains above both the 200-day ma and the topside of the bull channel with daily techs remaining firm, focus will remain on upside potential. An extension above 0.9099 will initially target 0.9143 with push above here to unlock 0.9200 where the 2-yr trendline resistance and Fibo resistance converge. Initial stops at 0.9035.

GBP/USD

Target 1.4870 Buy at 1.4720 Stop at 1.4655

Resistance:1.49101.48741.4810

Support:1.47201.46571.4609

Staying on a firm tone as seen from the support line fr the 24-Nov low. However, topside remains capped at the strong 1.4800/10 barrier and a sustained breach above, would instill further upside push towards next resistance seen at 1.4874. Hourly support seen at 1.4720 ahead of trendline support seen at 1.4657. Use this level for stops on long position as a violation below, would see stronger sell-off.

USD-JPY:

Target 113.62 Long at 112.50 Raise stop to 112.25

Resistance:114.30113.62113.15

Support:112.47112.38112.00

Firm session has now seen the market slightly extend the rally to a high of 113.15 with bias remaining long and in favour of additional gains toward the next target of 113.62. Beyond here targets are seen at 114.30 then in the 116.60/90 region. Initial stop favoured just below support at 112.38 but the underlying medium term bias will remain long while trade remains above 111.78.

EUR-CZK

Target 35.20 Long at 34.70 Stop at 34.50

Resistance:35.20035.08034.750

Support:34.60034.54034.450

Has eased back since Friday though the 34.50 stop level is intact to keep focus on buying unless a sustained breach of the 34.60 congestion zone is seen.In this case risk would be for pullback to the 61.8% Fibo at 34.32. Overall the upmove since last month has been underpinned by three channel supports which came in at the 34.10/33.70 zone. Upside target is 35.08 ahead of 35.20 channel resist.

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