jul 29 varengoldbankfx daily report

8/9/2019 JUL 29 VarengoldbankFX Daily Report

1/8

www.varengoldbankfx.com Intelligent Investments

Thursday, July 29, 2010

Good morning from wonderful Hamburg and welcome to our Daily FX Report. Today, we have

the JPY and the NZD who has lost against all of its 16 major counterparts in focus. Furthermore

we are going to report about the USD and the EUR. As always, we wish you a successful trading

day.

Market Review Fundamental Perspective

The JPY is trading near its highest level this year versus the USD as signs that the global

recovery is slowing. That boosted the demand for the JPY as a refuge. Furthermore the JPY

climbed against the most currencies after orders for durable goods unexpectedly fell last month

and the Federal Reserve in the U.S. said that economic growth is slowing in some areas. Also a

report today may show that the euro zone manufacturing confidence remained negative this

month. The JPY was at 87.49 per USD before it touched 86.27, the most since the beginning of

December. The EUR traded unchanged versus the JPY at 113.70 after reaching 114.74, the

weakest level since the middle of May. In July, the JPY could gain as much as 1.1 percentagainst the USD and has lost more than 4.8 percent versus the EUR. Also the USD weakened

against the EUR this month. The currency pair increased 5.8 percent.

The NZD dropped for a third day as the central bank of New Zealand published that the pace of

increasing interest rates will slow down. Before that, the national central bank raised the

benchmark for a second month. The NZD weakened versus all of its 16 most traded

counterparts, because economists have expected some more increases in the future. The USD

could rise 0.5 percent versus the NZD and reached 0.7235. Also its partner from the SouthPacific nation, the AUD, fell and traded near a one week low against the USD. After touching the

0.8906 level, the currency pair recovered and could limit its losses.

Currently, the South Pacific nations offer the highest interest rates. New Zealand has an interest

rate of 3 percent and Australia even has 4.5%. This is why these two countries are so interesting

for investors. They lend money from a nation with lower rates and invest in the higher rate.


2/8


Daily Technical Analysis (In this section we provide chart analysis)

Our Focus Currencies for Today

USD/CAD (4 Hour)

On a two month view, the currency pair rebounded as it reached its highest level during June

and July. Afterwards the USD has been trading along a bearish Fibonacci Fan. Recently, the

prices could cross the upper line as it touched its support before. We might see further gains if

the USD has enough power to break the next resistance around 1.0419.

Intraday Support & Resistance (4 Hour)

Support Levels around Resistance Levels around

1.0307 1.0419

1.0195 1.0492

1.0130 1.0574


3/8


EUR/GBP (4 Hour)

After a long bullish trend, the EUR weakened versus the GBP and is trading among a bearishtrend line. At the moment, the currency pair touched its support level. It remains to be seen if the

support could stop the current trend. If not, we might expect further losses for the EUR.



0.8326 0.8393

0.8265 0.8430

N/A 0.8507


4/8


EUR/CHF (4 Hour)

As you can see, the EUR/CHF has been trading inside an upward pitchfork channel. Recently,

the prices decreased as they touched the resistance level around 1.3782. The last time as the

prices reached its resistance it fell in the lower channel. Next support could be around 1.3557.



1.3557 1.3782

1.3370 N/A

N/A N/A


5/8


EUR/CAD (1 Hour)

Since the middle of July, the currency pair is trading inside a bullish trend channel. Currently, the

EUR approaches its resistance around 1.3507. It remains to be seen if the bulls have enough

strength to cross the resistance as the last time. A continuing bullish moving average could be a

signal for a further increase.



1.3400 1.3507

1.3340 N/A

1.3280 N/A


6/8


EUR/AUD (4 Hour)

As the EUR touched its resistance, it fell to its support to 1.4329 and recovered. Now, we have

to wait if the currency pair could break its resistance around 1.4578. A crossing Stoch indicator

through the signal line from the top may support a rebound for the EUR/AUD.



1.4329 1.4578

N/A 1.4920

N/A N/A


7/8


Daily Calendar & Key FX Events

Date Time (GMT) Economic Indicator Last

29.07.2010 12:30 CA Industrial Product Price MoM 0.3%

29.07.2010 12:30 CA Raw Materials Price Index MoM -7.2%

29.07.2010 12:30 US Initial Jobless Claims 464K

29.07.2010 12:30 US Continuing Claims 4487K

If you have any questions, please contact us for further assistance. 24 hours a day:

German: +49. 40. 66 86 49 0

English: +49. 40. 66 86 49 0

French: +49. 40. 66 86 49 0

Russian: +49. 40. 66 86 49 894 or

+49. 40. 66 86 49 - 0

Arabic: +971.4.319.7480

Chinese: +49. 40. 66 86 49 896

Turkish: +49. 40. 66 86 49 0

24 h Trading Support: +49. 40. 66 86 49 33


8/8


DISCLAIMER

IMPORTANT NOTIFICATION TO BE READ IN CONJUNCTION WITH THE CONTENTS OF THISPROMOTIONAL DOCUMENT

This document Daily FX Report is a promotional document and is created and published by Varengold Wertpapierhandelsbank AG.It is exclusively aimed at German business partners and customers who make their own investment decisions at their own risknotwithstanding the contents of this promotional document. Investment decisions should be made on the basis of a precedingconsultation with an independent financial advisor and prospectus, but not on the basis of this promotional document. Depending onthe individual investor's investment goals, investment horizon or financial situation, the contents of the present promotional documentmay not be suitable at all or only in part. This promotional document is not aimed at persons with residence and / or place ofbusiness and / or branches abroad, particularly in the United States of America, Canada, Japan or Great Britain. This promotionaldocument is for information only and especially does not constitute a public offer, an advice, recommendation or an invitation tosubmit an offer for purchase or selling of or subscription to securities or other financial instruments.

This promotional document does not constitute a financial analysis.Therefore it does not fulfill the legal requirements ensuring the impartiality of financial analyses. This promotional document is notsubject to the prohibition of trades before the publication of financial analyses. With this promotional document no individualinvestment advisory and / or information relationship with Varengold Wertpapierhandelsbank AG is established.All declarations, statements or assessments included in this promotional document are those of this document's author; they do not

imperatively correspond to third party statements. Varengold Wertpapierhandelsbank AG has taken the entire information on whichthe promotional document is based from sources considered serious and reliable, but without verifying the entire information. This iswhy Varengold Wertpapierhandelsbank AG does not give promises or guarantees regarding precision, completeness or accuracy ofthe information or opinions included. Varengold Wertpapierhandelsbank AG does not assume any liability for losses and direct orconsequential damage caused by the use of this promotional document and / or associated with the use of this promotionaldocument. The contents of the promotional document correspond to the state of information as of the date of its preparation. It maybe outdated on account of future developments without the promotional document having been modified. Any complete or partialreproduction or any other usage and /or distribution of this promotional document is subject to publisher's prior written consent.

For further information please read our full disclaimer at http://www.varengold.de/en/disclaimer.html

Trading the foreign exchange market carry a high level of risk and may experience substantial loss in part or all of an investment.

jul 29 varengoldbankfx daily report

Documents