Daily Market Technicals 24/03/2001

In the Asian session EURUSD opened the session and barely moved through the early session after an open at .8927 following a volatile week. After selling of EURYEN to 109.30 and EURGBP to session lows near .6235/37, EURUSD dipped under .8900 to .8895 with the focus this week on ECB meeting and possible rate cuts. Dealers felt USDJPY was likely to be on the defensive due to Japan’s recent monetary easing, political uncertainty at home as well as the potential for a seasonal pick up in foreign investment. The currency pair opened the session at 123.50 and traded in a 122.77/123.80 range. USDCHF opened the session at 1.7194 and was offered as the currency pair set the low around 1.7176 having earlier set the high around 1.7224. The currency pair range traded awaiting fresh direction from moves in EURUSD. GBPUSD opened the session at 1.4269 and traded in 45-point range (1.4245/93) settling around 1.4275 going into the European session. AUDUSD and NZDUSD opened the session at .4900 and .4168 and traded in .4891/.5000 and .4047/.4168 ranges respectively.

EUR-USD

Target 0.8810 Short at 0.8950 Lower stop to 0.8940

Resistance:0.90150.89670.8930

Support:0.88700.88360.8800

Has edged back above the 0.8900 level putting existing shorts at risk. Intraday tools stay mixed & suggest trading likely to be choppy. It would take a sustained push above 0.8970/80 former support zone to relieve bearish pressure & allow for upticks above 0.9015, former chart support. Sustained break below 0.8870 to call for further test of 0.8853 & 0.8836 lows. Stops kept ABOVE first resistance.

GBP-USD

Target 1.4115 Short at 1.4275 Lower stop to 1.4315

Resistance:1.43941.43651.4311

Support:1.42501.42031.4176

Retains a bearish outlook keeping focus on shorts for further probes below the 1.4200 level. However, oversold daily posture and hold above the 1.4200 level threatens rebound to keep trading range bound. Upticks would need to clear the 1.4400 level to confirm recovery and correct decline from above 1.4700 high seen earlier this month. Failure to hold 1.4200 risk extension to 1.4000/1.3950 support zone.

USD-JPY

Range trade Buy at 122.50 Sell at 123.50

Resistance:124.42124.29123.79

Support:123.00122.50122.00

Rejection from the 123.80 intraday high see 123.00/10 support to watch as a break here would open the way for retest of the 122.50 support with the 122.00 key level to follow. Doji star seen last Thursday and the subsequent bear engulfing candle weighs and keep the short term focus on corrective play. Range trade outlook favour shorting play for return to test the 122.50/00 support zone.

EUR-CZK

Target 34.65 Long at 34.40 Stop at 34.27

Resistance:34.95034.89034.700

Support:34.29034.15034.000

Has dropped, eroding previous 34.375 support. Longs require immediate recovery to avoid confirmation of bear break from recent range below 35.00. Recovery thru 34.375/400 could encourage further s/term gains towards 34.70 hourly highs. With shorter term momentum notably oversold a stop & reverse strategy may no longer be low risk.

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