jul 28 varengoldbankfx daily report

8/9/2019 JUL 28 VarengoldbankFX Daily Report

1/8

www.varengoldbankfx.com Intelligent Investments

Wednesday, July 28, 2010

Good morning from Hamburg and welcome to our Daily FX Report. Today we are going to report

about the strong JPY who fetched gains versus all of its counterparts. In contrast to that, the

CHF has lost against all of its most traded counterparts. Yesterday, the published economic data

has dominated the market. Also today, we expect some important data.

Market Review Fundamental Perspective

The CHF weakened to a five week low versus the EUR and declined against the USD as gains

by stocks and an increase in the German consumer confidence curbed the demand for the

currency pair as a refuge. The CHF dropped for a fourth consecutive day as the Swiss Market

Index of equities jumped 1.2 percent after the nations biggest bank, the UBS AG, published that

their profits surpassed analysts estimates. The EUR strengthened as much as 1.3 percent

against the CHF and traded at 1.3796, the highest level since the last week of June. The USD

rose 1.2 percent to 1.0612 versus the CHF. Furthermore the CHF has lost against all of its other

most traded counterparts and continued its bearish trend this week. In contrast to the weak CHF,

the GBP could extend its upward trend. The currency rallied 0.5 percent to 1.5569 against the

USD after earlier touching 1.5578, the highest level since the beginning of February.

The JPY could rise versus all of its 16 major counterparts on speculation that signs of a slowing

U.S. economic recovery will increase the demand for safer assets. The JPY recovered from a

two months low against the EUR after U.S. consumer confidence dropped to a five month low. A

report due in two days is forecast to show that the U.S. economy expanded at a slower pace in

the second quarter. The EUR dropped to 113.79 against the USD. Also the powerful AUD could

not stop the JPY and ended a four day gain versus the JPY on concern that consumer pricereport today will prompt the central bank to hold the benchmark interest rate unchanged at a

record low next week.

The CAD fell against the USD after three day gains and touching its highest level in more than a

month after a measure of U.S. confidence trailed economists forecasts. That reduced the appeal

of higher yielding currencies. The CAD declined 0.4 percent to 1.0359.


2/8


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

Our Focus Currencies for Today

GBP/AUD (1 Hour)

One week ago, the currency pair recovered from its bearish trend and has been trading along an

upward Fibonacci Fan. Currently, the prices reach the resistance level around 1.7295. During

the last week, whenever the GBP touched this level, the prices decreased. Also an overbought

RSI indicator may support a repeated scenario.

Intraday Support & Resistance (1 Hour)

Support Levels around Resistance Levels around

1.7142 1.7295

1.7090 N/A

1.7060 N/A


3/8


GBP/CAD (4 Hour)

On a two months view, the GBP has been trading in a bullish trend versus the CAD. At themoment, the currency pair is trading around its resistance level around 1.6170 and touched its

upper Bollinger Band. The last two times we had this case, the GBP dropped. Next support

could be around 1.5943.



1.5943 1.6170

1.5828 N/A

1.5470 N/A


4/8


GBP/CHF (4 Hour)

After unexpectedly gaining over 600 pips, the currency pair reached its resistance level around

1.6548. Now, it remains to be seen if the bulls have enough power to cross this level. If the GBP

could break the resistance level, we might see further gains. In contrast to that, the crossing

Stoch may indicate a rebounding trend. We have to wait the next few days how it goes on.



1.6220 1.6548

1.6105 1.6780

1.5880 N/A


5/8


EUR/GBP (4 Hour)

As you can see, the currency pair is trading in a sideways movement. At least, it fell as it

touched its upper Fibonacci Fan. It seems that the support around 0.8327 (23.6) is strong

enough to stop the trend as many times before. An increasing DeMarker may support a

changing trend.



0.8327 0.8395

0.8260 0.8429

N/A 0.8505


6/8


GBP/NZD (4 Hour)

After falling along a bearish Fan, the GBP came back in its sideways trend channel. When the

currency cannot cross the upper line of the channel, we might see further losses. A crossing

Stoch indicator through the signal line from the top could a signal for a drop to the lower line

around 2.1038.



2.1038 2.1345

N/A 2.1390

N/A 2.1595


7/8


Daily Calendar & Key FX Events

Date Time (GMT) Economic Indicator Last

28.07.2010 11:00 US MBA Mortgage Applications 7.6%

28.07.2010 12:30 US Durable Goods Orders -1.1%

28.07.2010 12:30 CA Teranet/National Bank HPI 12.9%

28.07.2010 13:00 GE Consumer Price Index MoM 0.1%

28.07.2010 13:00 GE CPI EU Harmonised MoM 0.0%

28.07.2010 13:00 GE CPI EU Harmonised YoY 0.8%

28.07.2010 18:00 US Fed`s Beige Book -

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 28 varengoldbankfx daily report

Documents