Daily Market Technicals 15/02/2001

A very quiet session in Asia today as the majors trade in very tight ranges with the exception of the yen. Continued repatriation has kept the USDJPY and EURJPY from making any substantial rallies as exporters continue to demand yen on any signs of weakness. Also rumours that Japanese institutional investors will be converting the proceeds from their investments in US treasury bonds, are keeping demand for the yen strong. Once the final week in march arrives, many players are looking for a strong rally in USDJPY. Alan Greenspan’s comments yesterday appeared to be positive for the US economy, however the Dow Jones did not reflect the perception droping over 100 points but the Nasdaq ended up over 2.5%. The Australian dollar continued to come under severe pressure after the overnight slide below the technically important 0.5320 level. The aussie is also feeling the effects of the yen repatriation. AUDUSD slid to a two and a half month low at 0.5365 today. EURUSD also continues to look vulnerable sliding to 0.9175 today before sellting at 0.9180.

EUR-USD

Target 0.9115 Short at 0.9190 Stop at 0.9230

Resistance:0.93320.92650.9220

Support:0.91670.91300.9111

With hourly momentum tools flat see trading confined to tight range though the weak daily tools keep the focus on the 0.9130/11 lows. However, bull divergence on the intraday tools suggest scope for rebound and a push above the 0.9200/20 resistance would favour reversal to longs for test of 0.9330/50 area. Wedge formation on daily chart from the 0.9593 high is seen corrective of runup from Oct.

GBP-USD

Target 1.4635 Long at 1.4550 Stop at 1.4530

Resistance:1.46561.46401.4612

Support:1.45410.45081.4476

Scope seen for minor pullback into the 1.4520/00 support with bear divergence on the hourly tools seen weighing. However, hold above the 1.4450/35 support keep the downside protected and short term outlook positive. Choppy trading seen for now but maintain buy on dips strategy and where extension through 1.4600/12 chart/Fibonacci level would see upticks to challenge the 1.4700/10 trendline and 200-day MA.

USD-JPY

Target 117.00 Buy at 115.80 Stop at 115.55

Resistance:117.35116.90116.60

Support:116.03115.82115.71

Favour buying on dips with the 116.00 initial support and a firmer level placed at 115.80/70, being chart and 61.8% Fibonacci level. Dips into this area viewed as buying opportunities with the 115.60 weekly candlestick support marking stops. Bull divergence on intraday momentums favour a rebound. Look to buy dips or on a break above 116.50 for test of 117.00 initially and then 117.50/76 area.

EUR-CZK

Target 34.00 Sell at 34.70 Stop at 35.05

Resistance:35.10034.90034.750

Support:34.45034.36534.150

Has breached 34.60, the 61.8% retracement level of the Nov/Jan upleg to put the upside on hold and favour switching to a sell strategy short term. Key intraday resistance is seen at 34.75/80 ahead of the more important 34.90/35.00 zone. Immediate support to overcome is at 34.45/40 ahead of 34.36. Below here focus would be on the 34.15 low.