Daily Market Technicals 21/02/2001

The euro came under continued pressure today in Asia sliding substantially against the yen, dragging EURUSD down in its wake. Fuel for the move has been attributed to European investors snatch up the last shares of the Japanese mobile phone giant NTT DoCoMo. Thursday is the last day and today would be the last day to settle spot deals for conversion from euros into yen. EURUSD opened at 0.9121 and slid early Tokyo to 0.9080 before finishing the session at 0.9095. Dealers have also been apprehensive about the German IFO figure to be released later today. This number is expected to come in low. The Aussie and the Kiwi took their cue from the euro today sliding slightly from their opens to finish at 0.5228/32 and 0.4272/77 respectively. Cable weakened from 1.44.75 to 1.4450.

EUR-USD

Target 0.9024 Sell at 0.9130 Stop at 0.9160

Resistance:0.92400.91720.9130

Support:0.90700.90470.9024

Upticks seen corrective of the sharp drop yesterday and selling are favoured into 0.9110/30 former support area with tight stops suggested. The rejection from 0.9235/40 Fibonacci and trendline resistance returns focus to the 0.9047/24 lows seen last week. Trading remains within a bear channel though bull divergence on daily momentum tools suggest scope for rebound. Above 0.9150 to lift short term outlook.

GBP-USD

Target 1.4550 Long at 1.4450 Stop at 1.4400

Resistance:1.45461.44981.4480

Support:1.44301.44001.4310

Doji candlestick on the daily chart suggest short term recovery in play from the 1.4312 spike low seen yesterday. Return above the 1.4400/30 zone see buying cautiously favoured with longs targeting 1.4550 level. Clearing this set up test of the 1.4600/12 high and then 1.4640 bear channel top. Only a sustained break below the 1.4400 level would leave the way open to the 1.4200 channel support.

USD-JPY

Target 116.20 Buy at 115.50 Stop at 115.00

Resistance:116.45116.22116.00

Support:115.30115.00114.52

Retains a supportive tone while above the 115.30/00 zone and buying on dips strategies favoured. Hold above this favour a return to test the 116.00 and 116.20/30 resistance. Hammer candlestick formation seen last Friday is supportive and break above the 116.20/30 resistance will clear the way for test of the 117.10 bear channel resistance drawn from the 119.90 high.

EUR-CZK

Target 34.00 Sell at 34.70 Stop at 35.05

Resistance:35.10034.90034.680

Support:34.40034.36534.150

Has adopted a choppy tone following breach of 34.60, 61.8% of the Nov/Jan upleg to put the upside on hold and favour a sell strategy short term. Intraday resistance is seen at 34.65/70 ahead of the more important 34.90/35.00 zone. Immediate support to overcome is at 34.45/40 ahead of 34.36. Below here focus would be on the 34.15 low. Oversold daily tools favour selling on upticks.

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