Daily Market Technicals 29/12/2000

The last Asian session before the close of the year brought little hope for the YEN as the USDJPY set fresh highs as bulls drove the currency pair to highs of the day at 114.89 having opened the session at 114.31. With noted resistance at 115.00 and thin liquidity the bulk of the session, it was thought that some commercial, speculative and enterprising banks might try to sell the currency pair down, but it remains well bid. The session low was 114.36 and the currency pair settled around 114.71 going into the European session. EURUSD has hovered around .9300 for the last few sessions as the market has enjoyed the ride higher. The currency pair while stagnant has traded in a range fifty points above the figure and fifty points below it. The currency pair settled around .9300 with a bid tone having traded in a .9283/.9300 range. USDCHF opened the session at 1.6339 and was quiet as the close of the year has brought squaring of positions. The currency pair traded in a 1.6340/81 range that saw it close in the upper half of the range. GBPUSD was bid with rumors of 1.4900 as an area of support as the currency pair made three attempts below the figure that failed to hold trading above the figure to settle around 1.4912. The currency pair traded in a 1.4897/1.4937 range. AUDUSD and NZDUSD opened the session .5544 and .4401 and traded in .5531/48 and .4402/07 ranges respectively.

EUR-USD

Target 0.9160 Short at 0.9300 Stop Lowered 0.9315

Resistance:0.93780.93410.9310

Support:0.92480.92350.9172

Confined to tight trading range below 0.9300 with signs of weakness beginning to emerge on daily technicals. Below the 0.9300/10 area see negative tone pressuring for test of 0.9235 support. Break below this would trigger additional losses to target 0.9160 though potential would be seen for test of the 0.9100 level, being 38.2% retracement of the 0.8714/0.9341 upleg. Stops placed above 0.9300/10

GBP/USD

Target 1.5000 Long at 1.4865 Raise stop to 1.4890

Resistance:1.50001.49791.4930

Support:1.48601.48281.4800

Showing signs of easing off from the recent firm trend going into the last trading day of the year. Upside test stalled once again ahead of the 1.5000 psychological level, Thursday, resulting in a harami candlestick on the daily chart. Look to stop and reverse the exsting long postion on break below 1.4890 for test into the 1.4800/1.4750 zone. Only above 1.5000 would trigger additional gains to 1.5200/1.5300.

USD-JPY

Target 114.85 Long at 114.30 Raise stop to 114.30

Resistance:115.76115.20114.90

Support:114.35114.12113.85

Holds a positive tone though upside test stalled into the 114.90/115.00 area. Expect this to pose strong resistance and keep gains capped for now. Break would be needed to trigger additional gains to 115.76/116.12 the 38.2% retracement of the May-Dec 1999 downleg and high of Aug-99. On the downside see the 114.10/00 area offering support and unless negated keep bulls in control.

EUR-CZK

Target 35.70 Long at 34.70 Raise stop to 34.70

Resistance:35.20035.08035.000

Support:34.60034.54034.450

Strong reaction through the 35.00/08 resistance has left longs intact with channel resistance from the May highs at 35.05 breached. Look for this to support on pullback as a sustained hold above 35.00 would now open way for bull channel resistance at 35.60 ahead of the 35.80 congestion. 35.00 area reverts to support ahead of 34.80.

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