Daily Market Technicals 08/03/2001

In the Asian session USDJPY surged to 20-month highs following Finance Minister Kiichi Miyazawa's comments that Japan’s finances were near a state of collapse and that fundamental fiscal reform was necessary. The currency pair opened the session at 119.89 and traded down to 119.46 (session low). As speculators bought the dip the currency pair traded up to 119.80, where profit taking saw the currency pair dip back down to the session low before a final rally to 120.40. EURUSD opened the session at .9297, traded down to .9283, before rallying to the session high at .9318 from where profit taking drove the currency pair lower to settle around .9308. USDCHF opened the session at 1.6565 was tentative as the currency pair initially traded higher to the session high at 1.6578 before coming off to set the session low at 1.6518 after which it rallied to 1,6545 from where it looked heavy settling around 1.6533. GBPUSD was quiet, trading in a 1.4603/23 range having opened around 1.4617. AUDUSD and NZDUSD opened around .5102 and .4235 and traded in .5090/5114 and .4207/35 ranges respectively.

EUR-USD

Resistance:0.93780.93710.9320

Support:0.92620.92400.9210

Target 0.9365 Long at 0.9275 Stop at 0.9235

EUR-USD below 0.9320 resistance threatens further downside test of the 0.9250/60 area. Breakdown here will trigger a double top on the daily chart and trigger additional losses to 0.9200/10 support. Bull flag formation on daily chart since the high of 0.9378 favour longs for retest of this high and eventual break to clear the way to 0.9440/45 highs seen early this month.

GBP-USD

Resistance:1.47271.46841.4646

Support:1.45751.45501.4500

Target 1.4800 Long at 1.4615 Stop at 1.4570

CABLE holds above the 1.4600 level with pullback into 1.4612/1.4570 former range top providing buying opportunities. Overall tone remains positive while this area holds intact for upticks to test the 1.4700 level initially ahead of the 1.4764 and then 1.4800/30 zone. Risk is for a breakdown from 1.4570/50 area to put bull play on hold and trigger stronger setback towards the 1.4450/35 support area.

USD-JPY

Resistance:121.15120.50120.21

Support:119.44119.00118.60

Target 120.50 Long at 119.50 Raise stop to 119.40

USD-JPY retains a firm tone keeping focus on further bull play above the 120.00 level. While gains stalled just ahead of the 120.50 target, dips are buy for eventual break here to sets up challenge to the 121.00/15 area. Further out see attraction to 122.60/80 measuring objective out of the Jan-Feb triangle & chart resistance. Downside to see 119.50 and 119.00 levels offering supports.

EUR-CZK

Resistance:35.32035.10034.950

Support:34.60034.40034.350

Target 35.50 Long at 34.80 Raise stop to 34.50

EUR-CZK 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 35.50.

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