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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (39415)	2/8/2000 9:37:00 AM
From: awi	Read Replies (1) \| Respond to of 99985

cmcplc.com Technicals- The Euro is sandwiched between the s/t uptrend off the 0.9665 lows at 0.9750/55 (closing uptrend support at 0.9780/85) and the downtrend off the Jan 12th high of 1.0368 at 0.9883 (hrly closing basis 0.9872). A breach of the 0.9880/85 downtrend and a daily close above 0.9900 will open up a re-test of the 0.9950 level Eur/Yen-The Euro rallied against the Yen to break last weeks highs of 106.89 to reach an overnight high of 107.45. 106.70/90 now acts as a support with 107.50 the initial resistance point. A daily close above 107.05/10 and more importantly a close above 107.65/70 (taking closiing lows off Sept`s low ) will turn very bullish. A break of the above mentioned levels will target a minimum 109.70 lvl. Eur/Stg- Following last weeks rally off the 0.5980 lows to a high of 0.6260 we have since brken back down through supports at 0.6185/00 to trade at the 50% retracement level of the above move at 0.6120. Hourly closing res line at 0.6135 limiting the upside. initial support located at 0.6115. German January seasonally adjusted jobless fell 33,000 from December (less than the mkt had anticipated) The Euro has stabilised within the recently established broad 0.9750/0.9950 range and tigher 0.9750/0.9885 range with the currency receiving a lift from the weaker tone to the broad US stock indecies, Eur/Yen cross buying interest and to strong supportive rhetoric from the G10 Central Bankers meeting. Reasons cited for an eventual turnaround of the Euro were an eventual slowdown of the US economy and continued Eurozone expansion. This scenario is sure to take place but may be a little premature at the current time. If indeed we do see a correction in US stock markets then the Euro may attempt a correction. In the short term we await a break of the tightening 0.9750/0.9885 to provide further near term direction.