Daily Market Technicals 12/02/2001

In the Asian session USDJPY remained bid as YEN pessimism continues in the face of economic woes in Japan. The currency pair opened the session at 117.63 and came off initially to set the session low (117.45) before rallying to set the session high (117.93) on relative USD strength. Dealers report that stops above 117.80 were triggered as selling around 117.75 gave way in thin trading. EURUSD traded in a quiet .9248/89 range that saw the currency pair settle around the session high following an open at .9250. EURUSD benefited from EURYEN buying that triggered stops above 109.25 trading as high as 109.40. This buying lifted EURUSD to .9295 from its open as sentiment for the currency pair improves following last week’s corrective sell-off. USDCHF saw a sell-off in lieu of the EURO strength and following an open at 1.6605 (session high 1.6613) the currency pair meandered lower the bulk of the session settling and setting the session low around 1.6625. GBPUSD following an open around 1.4454 traded in a 40-point range 1.4449/89 that saw the currency pair settle around the session high. AUDUSD and NZDUSD opened the session at .5370 and .4361 and traded in .5366/82 and .4354/63 ranges respectively.

EUR-USD

Wait Break Above 0.9300 Resistance Level

Resistance:0.93800.93450.9301

Support:0.92500.92100.9170

Firm tone on the hourly posture keeping upside pressured for test of the 0.9300 level. A break above the latter would bode well for stronger gains to test 0.9340 and 0.9380 resistances. The rebound from 0.9142/0.9111 support last Friday see the downside protected favour trading within the 0.9355/0.9240 range. Hold above the 0.9210 keep the downside protected and 0.9111 low out of reach.

GBP-USD

Target 1.4320 Short at 1.4450 Stop at 1.4510

Resistance:1.45601.45501.4510

Support:1.44501.44001.4370

Remains within a bear channel drawn from the 1.4833 high seen 02-Feb keeping focus on shorts. However, firm intraday tools see risk for a break above the 1.4510 channel resistance on the hourly chart. The 1.4397 level marks 61.8% Fibonacci level and failure to sustain below this see scope for short term recovery. A break above 1.4510 would reverts to longs for test of 1.4600 former support level.

USD-JPY

Target 118.00 Buy at 116.50 Stop at 116.10

Resistance:118.10118.00117.76

Support:116.90116.40116.00

Extending the upside through the 117.75/76 chart/Fibonacci level but further gains to see additional resistance at 118.00/10. Bear divergence on the intraday momentum tools suggest scope for corrective dips on test of this latter. However, downside is seen well protected with the 117.10 trendline support on hourly chart ahead of 116.40/00 zone. Look for dips to provide buying opportunities.

EUR-CZK

Target 35.10 Long at 34.70 Stop at 34.50

Resistance:35.10034.90034.720

Support:34.53034.52034.365

 Has put pressure on 34.60, the 61.8% retracement level of the Nov/Jan upleg. With support also offered by 20-Dec 34.520 low, & room still for recently very oversold daily momentum to unwind, there is scope for a natural recovery. Favour longs, looking for recovery at least to 35.00, but capped by higher congestion resistance at & below 35.25.

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