DAILY MARKET REPORT

MONDAY 07-02-2005

 

Currency

GBP/$

EUR/$

$/CHF

$/JPY

Resistance 4

1.8980

1.3130

1.2245

105.30

Resistance 3

1.8930

1.3080

1.2175

104.80

Resistance 2

1.8875

1.3040

1.2130

104.30

Resistance 1

1.8840

1.2970

1.2070

103.75

Support 1

1.8775

1.2940

1.2040

103.35

Support 2

1.8735

1.2875

1.1970

102.75

Support 3

1.8645

1.2835

1.1935

102.20

Support 4

1.8550

1.2775

1.1870

101.35

 



EUR/USD

The Euro registered a high of 1.3045 (1.3075 trendline, IKK & Fibbo resistance) but later dipped to break key supports at 1.2970 (trendline, cloud density & renko support) & 1.2930 (Fibbo, Gann arc & renko support) to form a low of 1.2864 (1.2845 Fibbo retracement, parabolic & MACD support). The bearish downtrend has resumed with a sustained bearish engulfing break & close under 1.2940 to mount a challenge to target 1.2845 (IKK, cloud density & renko support) & later 1.2775 (William's %R & pitchfork support). However, the bullish forces would strengthen with a persistent piercing penetration & close past 1.3075 (weekly closing) for sterner attempts on 1.3140 (IKK & detrend resistance) & later 1.3230 (elliot wave target & trendline resistance).
Daily stochastics & candles hint at a southwards bias. We prefer to buy the Euro on dips to 1.2800-1.2790 with a stop at 1.2750 for a target of 1.2900-1.2910 while selling the Euro on rises to 1.2930-1.2940 with a stop at 1.2975 for a target of 1.2850-1.2840.



USD/CHF

The dollar rallied to a high of 1.2117 (1.2135 trendline, cloud density & IKK resistance) after having broken key resistances at 1.2040 (trendline, crest & renko resistance) & 1.2075 (William's %R & pitchfork resistance) from an earlier low of 1.1951 (1.1935 crest, fibbo & Gann angle support). The broader bearish trend would entrench itself with a sustained close under 1.1875 (crest & renko trough formation) with targets set on 1.1750 (trendline, oscillator & Gann arc support) & later 1.1615 (double bottom, William's %R & pitchfork support). The bullish corrective rise has cemented its strength with a persistent penetrative close past 1.2045 (bullish engulfing) for fresh challenges to 1.2175 (mid bolinger & cloud density resistance) & 1.2235 (chart point & triangle resistance). Daily stochastics & candles in the daily charts shows a northwards bias. We prefer to buy the dollar on dips to 1.2075-1.2065 with a stop at 1.2020 for target of 1.2160-1.2170 while selling the dollar on rises to 1.2210-1.2220 with a stop at 1.2250 for a target of 1.2140-1.2130.



USD/JPY

The dollar recorded a high of 104.62 ( 104.35 IKK & cloud density resistance) but later dipped to break key supports at 104.75 (cloud density, mid bollinger & IKK support) to form a low of 103.51 (103.35 trendline, double bottom & crest support). The yen's broader bearish trend returns with renewed strength through a persistent maintenance under 103.35 (stochastics, MACD & pitchfork support) sets the tone for aggressive rallies towards 101.30 (trendline & Gann angle support) & later 98.60 (chart point, William's%R & gann arc support). The intra-term bullish corrective rise requires a re-emergent & successive close above 104.75 that leads to a targetting of 106.35 (Elliot wave target & Gann angle resistance) & 107.35 (trendline, crest & renko resistance). Daily stochastics & candles point at sideways southwards bias. We prefer to buy the dollar on dips to 103.50-103.40 with a stop at 103.10 for a target of 104.50-104.60 while selling the dollar on rises to 105.10-105.20 with a stop at 105.50 for a target of 104.20-104.10.



GBP/USD

The cable registered a high of 1.8917 (1.8925 cloud density & oscillator resistance) but later dipped to break key supports at 1.8875 (Gann arc & renko support) & 1.8830 (William's 5R & pitchfork support) to form a low of 1.8730 (1.8725 Fibbo retracement, parabolic & renko support). The breakage & close above 1.8920 (bullish rising/piercing pattern) is necessary to maintain the bull trend with targets set on 1.9150 (MACD & cloud density resistance) break of which would lead to targetting 1.9330 (elliot target & detrend resistance) & later 1.9550 (trendline, Fibbo fan & flagging congestion top resistance). However, the bearish momentum cycle has re-surfaced with a persistent penetration (bearish engulfing) under 1.8775 that re-inforces the bearish bias for attacks towards 1.8645 that later threatens for dives towards 1.8550 (cloud density & William's %R support) & 1.8420 (trendline & IKK support). Daily & stochastics & candles hint at a southwards bias. We prefer to buy the cable on dips to 1.8645-1.8635 with a stop at 1.8600 for a target of 1.8710-1.8720 while selling the cable on rises to 1.8790-1.8800 with a stop at 1.8835 for a target of 1.8720-1.8710.



DISCLAIMER:

The views expressed in this report are for discussion purposes only. Opinions & trading recommendations are for the purpose of analysis only and should be looked at as such. No claims shall be accepted for any losses incurred on account of the information provided.