Daily Market Technicals 13/03/2001

A choppy session in Asia today as the Nikkei 225 suffers severe losses at the open after the carnage on Wall Street yesterday. The index slid almost 4% at one point touching a low at 11710. However it managed to regain almost half its losses by early afternoon. The dollar, which had managed to remain strong despite the bloodbath on Wall Street, suffered a little weakness as the Japanese firms repatriated some of their foreign profits to make up for the losses they suffered in the stock market. USDJPY sank from its open at 120.55 to a low of 120.10 and seemed somewhat vulnerable technically on the downside. Fundamentally however the dollar should remain the currency of choice as global economic weakness emerges and this should keep the pair from sinking to far. EURUSD also weakened dragged down primarily by the EURJPY cross and the demand for dollars. EURUSD fell from 0.9300 to 0.9280. AUDUSD and NZDUSD slid alongside the EURUSD, as did the Cable.

EUR-USD

Target 0.9370 Long at 0.9265 Stop/Reverse 0.9240

Resistance:0.93780.93350.9300

Support:0.92550.92500.9210

Bias to the downside as the 0.9300 level caps but longs remain favoured while the 0.9250 support holds. Tight stops suggested just below this as inability to clear the 0.9378 resistance the past week see the daily momentum tools on the wane. However, bull flag scenario on daily charts remains intact while the 0.9250 holds firm and further attempt at 0.9378 looked for. Below 0.9250 see setback to 0.9210/00 zone. GBP-USD

GBP/USD

Target 1.4760 Long at 1.4630 Raise stop to 1.4630

Resistance:1.47641.47491.4695

Support:1.46001.45701.4540

Supportive tone above the 1.4612/1.4570 area keep focus on longs for further probes above the 1.4700 level. Range trading persist while the 1.4749/64 highs cap but eventual break here is looked for to see resumption of the bull trend. Above this set sight to the 1.4800/33 area. Tight stops are favoured as daily tools has turned mixed and breakdown from 1.4570 would risk setback to 1.4435/50.

USD-JPY

Target 120.90 Long at 120.32 Stop at 120.00

Resistance:121.80121.15120.80

Support:120.00119.60119.04

Negative hourly tools threatening push below the 120.00 level to stop out longs. Break here would favour corrective setback to the 119.30/00 support zone. Overall daily tone remains firm but overextended hourly tools limits the upside for now. Look for pullback onto the 119.30/00 area to offer buying opportunities for retest of 120.70 and then 121.00/15 area.

EUR-CZK

Target 35.50 Long at 34.80 Raise stop to 34.50

Resistance:35.32035.10034.950

Support:34.40034.35034.150

Has eased back 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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