Daily Market Technicals 06/03/2001

USDJPY slipped from six-week highs after the Finance Minister Kiichi Miyazawa dampened speculation that Japan may try to drive the YEN lower to help the economy. The currency pair opened the session at 119.17 (session high) and continued to came off as speculative longs lost faith and sold their long positions driving the currency pair to the session low 118.65 where it hovered going into the close. EURUSD opened the session at .9288 and spent most of the session trading in a .9260/70 range. The weakness in the currency pair was driven in large part by EURYEN weakness as the currency pair opened the session at 110.73 and traded down to 110.04 where it hovered. EURUSD traded in a .9262/92 range on the session settling around .9273. USDCHF opened the session at 1.6525 and traded higher on EURUSD weakness. The currency pair stalled around 1.6546 having set a session high at 1.6563. GBPUSD traded in a 1.4650/71 range having opened the session at 1.4667. AUDUSD and NZDUSD opened the session at .5217 and .4335, and traded in .5205/25 and .4320/34 ranges respectively.

EUR-USD

Target 0.9245 Short at 0.9360 Lower Stop to 0.9355

Resistance:0.94450.93780.9320

Support:0.92600.92400.9200

Corrective tone seen favouring a downside bias with 0.9260 former trendline resistance and 0.9240/45 offering supports. Below this see additional support at 0.9200, being the 50% Fibonacci retracement of the upmove from 0.9017 low. Upside to see the 0.9320 limiting for now but resumption of bull play to call for retest of 0.9378 high with the 0.9440/45 attracting beyond.

GBP-USD

Target 1.4800 Buy at 1.4612 Stop at 1.4570

Resistance:1.48001.47641.4680

Support:1.46581.46121.4575

Negative tone on the hourly tools keep downmside bias in play. Hourly charts suggest a bullish flag in the making with potential seen for renewed buying interest closer to the 1.4612 former bull trigger. Key support is at 1.4575 high seen 26-Feb which is expected to limit on dips. Intraday to see 1.4680 posing resistance and keep trading confined within tight range

USD-JPY

Target 119.90 Buy at 118.00 Stop at 117.50

Resistance:119.90119.75119.50

Support:118.65118.25117.95

Holds a consolidative tone with negative hourly tools favouring a downside bias. However, overall bullish tone remains intact and keep short term focus on the upside. Upside see the 119.00/20 resistance to cap intraday but dips are buy with the 118.50 and then 118.00 seen offering supports. Hold above the latter keep bulls in control for eventual break of the 119.90 high.

EUR-CZK

Target 35.50 Long at 34.80 Stop at 34.35

Resistance:35.32035.10034.950

Support:34.40034.35034.150

Inability to overcome the 34.15/00 support area last month saw buy stops triggered at 34.80. Note that 34.00 was a key psychological support area on synthetic weekly charts between Jul-98 and Jan-99. Taking this into account a buy dips strategy would be favoured following the inability to see breakdown in recent weeks. On the upside through 34.90/95 and targets 35.00/10 zone.

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