20.12.2000 08:29:00 TT-FX chart:EUR/USD

Although the Euro is somewhat over-extended short-term, we maintain the view that 0.9020 will give way over the coming sessions to yield an advance to 0.9137 (61.8% retracement 0.9700 to 0.8227), en route to 0.9352 (76.4% 0.9700 to 0.8227).
On the downside, and while 0.9020 continues to cap the topside, the risk is for a pullback to 0.8967 and 0.8923 ahead of fresh gains. However, only a loss of 0.8923 would undermine the immediate bullish tone to trigger a deeper correction to 0.8879.

20.12.2000 08:31:00 TT-FX chart:USD/CHF

Having maintained a foothold above 1.6760 and with bullish divergence developing on intraday charts, the USD has scope to correct higher to 1.6856 and perhaps 1.6905 on a break. Beyond here, a sucessful assault on 1.6990 is required to relieve the immediate heavy tone for a correction to 1.7047 (ahead of renewed losses). 1.6995 and 1.6622 (76.4% retracement 1.6108 to 1.8300), thereafter. The latter marks key support and as with 0.9020 in EURUSD represents the level which if breached would act as a support and as with 0.9020 in EURUSD represents the level which if breached would act as a catalyst for a more serious liquidation of M/T USD longs.

Gruss
Frank


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