Daily Market Technicals 22/12/2000

Trading was thin today ahead of Monday’s Christmas holiday. Early in the session a slumping Nikkei put pressure on the Yen against the currencies of its major trading partners in the US and Europe. USDJPY rose from a low of 112.10 to 112.55 before triggering stops that propelled the pair to a session high of 112.69. Following this one rapid early move the markets stayed relatively calm. EURUSD continued to press against the highs established in New York as operators continued to close in the money EURUSD and EURJPY positions heading in to years end. GBPUSD and USDCHF were both very quiet with little news of significant flows to motivate price action. AUDUSD and NZD were also extremely quiet ahead of Monday’s holiday.

EUR-USD:

Target 0.9180 Long at 0.8950 Raise Stop to 0.9095

Resistance:0.92860.92000.9172

Support:0.91070.90990.9040

Quiet afternoon sees mkt remain little changed as trade holds firm, just below the 0.9172 highs. Further resistance sits slightly higher at 0.9187 with a more significant barrier above at 0.9200. View modest dips on the day as corrective while above 0.9107 support but suggest initial stop below here in the 0.9095 region. Failure to hold here would then see the market slipping back toward 0.9052/49.

GBP/USD

Target 1.4610 Sell brk 1.4695 Stop at 1.4730

Resistance:1.48741.48401.4810

Support:1.46951.46091.4585

Breach above the strong 1.4810 resistance was short-lived with prices returning towards the up-trend support line, currently seen at 1.4695. Daily indicators are seen tapering downward and best strategies would be to sell a break of this uptrend line at 1.4695 for downward momentum to gather towards immediate support seen at 1.4609. Topside resistance still remains at the 1.4810 ahead of 1.4840 high.

USD-JPY

Target 113.17 Buy at 112.15 Stop/Reverse < 111.78

Resistance:113.17112.80112.73

Support:112.00111.78111.50

Holding above 112.50 in Asian afternoon trade as market consolidates in narrow band between here and intraday high 112.73. Sustained hold above 112.50 augurs well for attempts to extend above 112.73/80 to challenge the 113.17 high with extension above to tgt 113.62. Bear divergence on daily charts causes some concern but longs are favoured while above 111.78 lows with Stop & Reverse favoured below.

EUR-CZK

Target 35.20 Long at 34.70 Stop at 34.50

Resistance:35.20035.08034.750

Support:34.60034.54034.450

Has adopted a consolidative tone with the 34.50 stop level 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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