Daily Market Technicals 22/02/2001

In the Asian session EURUSD, which opened the session at .9094 was submerged beneath a sea of bearish sentiment in Tokyo after crisis hit turkey was forced to float its Lira effectively accepting a devaluation of its currency. The currency pair set a session high of .9107 before retreating under heavy selling pressure, that drove EURJPY from its open at 106.00 down to 105.20. USDCHF following an open at 1.6863 traded lower initially setting the session low at 1.6838 before the EURO sell-off drove the currency pair to the session high at 1.6898 from where it dropped off slightly. Rumors of options being protected at .9050 held EURUSD buoyant establishing a session low of .9060. USDJPY opened the session at 116.58 (session high) and remained offered the entire session trading below 116.00 late in the session where it hovered the balance of the session. The session low was 115.95. GBPUSD was quiet opening the session at 1.4425 and trading in a narrow 1.4409/37 range that saw the currency pair settle close to the session high at 1.4435. AUDUSD and NZDUSD opened the session at .5245 and .4301 and traded in .5242/53 and .4280/.4308 ranges respectively. 

EUR-USD

Target 0.9025 Short at 0.9165 Stop Lowered 0.9130

Resistance:0.92100.91800.9130

Support:0.90700.90490.9024

Hold below the 0.9110/30 resistance keep bears in control with the 0.9049/24 lows and 200-day MA under threat. Weak daily tools see scope break here to extend losses to test the 0.8980 channel support and 50% retracement of the 0.8372/0.9593 upmove. Risk on shorts lowered to the 0.9130 resistance but only above 0.9210 bear trendline drawn from 0.9445 high would alleviate the short term bear pressure.

GBP-USD

Target 1.4500 Long at 1.4420 Stop at 1.4380

Resistance:1.45461.44801.4465

Support:1.44101.43781.4312

Dips into the 1.4420/00 support seen as buy as inability to sustain probes below the 1.4400 level on a close basis keep the downside protected. However, tight stops on longs are favoured as hold below the 1.4480 bear trendline drawn from the 1.4612 high keep the downside vulnerable. Look for break above this to open up recovery back to the 1.4600 level. Below 1.4380 threatens the 1.4312 spike low.

GBP-USD

Target 117.00 Long at 116.00 Stop at 115.60

Resistance:117.63117.10116.82

Support:116.00115.60115.30

Pullback from the 116.82 high yesterday seen as buy into the 116.10/00 support. Longs cautiously favoured from here with the 115.60/50 chart area marking a stronger support. This is also hourly trendline drawn off the 114.52 low and unless negated will keep the focus on bull play. Longs favour test of the 117.05 bear trendline drawn from the 119.90 high. Beyond this see attraction to the 118.00 level.

EUR-CZK

Target 34.00 Sell at 34.70 Stop/Reverse at 34.80

Resistance:35.10034.90034.680

Support:34.45034.35034.150

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 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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