Daily Market Technicals 12/03/2001

In the Asian session USDJPY saw a fresh 20-month high as the Nikkei suffered a more than 3% loss. The currency pair opened the session at 119.54 and gapped higher to the session high at 120.58 where it hovered in a 120.31/39 range the balance of the session. The session low was 119.50. In the addition to the Nikkei woes the economy is under pressure as the government is being pressed to take quick and aggressive measures to boost the economy. EURUSD opened the session at .9326 and was stuck near Friday’s level trading in a narrow .9310/31 range that saw the currency pair settle around the session high at .9327/32 on EURYEN buying. USDCHF opened the session at 1.6528 and was relatively quiet settling around the session low at 1.6514 having set the low at 1.6511. The currency pair set the session high earlier at 1.6546 before the EURUSD rally that saw USDCHF trade lower. GBPUSD was quiet following an open at 1.4680 after which the currency pair traded in a 29-point range (1.4665/94). AUDUSD and NZDUSD opened the session at .5085 and .4197 and traded in .5074/93 and .4181/.4203 ranges respectively.

EUR-USD

Target 0.9440 Long at 0.9310 Stop at 0.9290

Resistance:0.94450.93780.9350

Support:0.92900.92620.9240

Holds a firm tone above the 0.9300 level though trading remains confined within the wider 0.9378/0.9250 range. Further sideways trading is likely though a hold above the 0.9240/50 support keep the downside protected and focus on buying strategies. Daily chart see a bull flag in the making and breakout from 0.9378 to set sight to 0.9440/45. Intraday favour upside bias while above 0.9290 hourly support. GBP-

USD/GBP

Target 1.4740 Buy at 1.4630 Stop at 1.4570

Resistance:1.47641.47491.4700

Support:1.46301.46151.4570

Remains below the 1.4700 level though downside is seen protected while the 1.4612/1.4570 support zone holds firm. Focus is on buying strategies this for further test of the 1.4749/64 highs and eventual break looked for to clear the way for test of 1.4833 and then the 1.5000/1.5100 zone. Only breakdown from the 1.4570 support would risk setback towards 1.4435/50 zone.

USD-JPY

Target 120.80 Buy at 119.70 Stop at 119.00

Resistance:121.80121.00120.80

Support:119.65119.04118.60

Extension through the 120.40 high set sight to 120.80 and then 121.00/15 chart area, short term. Beyond this see the 121.40 double bottom and 121.80 swing target attracting. Overextended hourly tools suggest scope for corrective dips to provide buying opportunities with the 119.60/65 seen offering support on hourly chart. Stops placed just below the 119.04 low seen last Friday.

EUR-CZK

Target 35.50 Long at 34.80 Raise stop to 34.50

Resistance:35.32035.10034.950

Support:34.65034.40034.350

Has eased back this week ahead of 35.00, though look for the pullback as a buy opportunity with the 35.50 stop level still intact. Overall the 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. On the upside above 34.90/35.00 targets 35.50.

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