Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Jul 22 08 07:11 GMT |

Good morning from wonderful Hamburg and welcome to Varengoldbank's daily FX Report. This morning we saw a beautiful sunrise without any clouds over the Hamburg harbour. Everybody who takes a trip in Hamburg must see the Hamburg harbour on a harbour boat trip. Markets review After nearly falling to a record low against the EUR on Tuesday last week, the USD was steady yesterday. The USD was pushed by better than expected results from big financial institutions such as Citigroup, JPMorgan and Bank of America but investors believe the worst of the problems in the US financial system are not yet over. Some investors were awaiting more earnings reports this week. The EUR may gain against the JPY on foreign securities investment by Japanese investors, with traders watching whether the single currency tops Monday's record high against the Japanese Yen. With no major data scheduled, the market was likely to move in narrow ranges as players mostly kept to the sidelines. Japanese financial markets were closed on Monday for a national holiday. The EUR/USD was little changed at 1.5925. Against JPY the EUR was nearly flat at 169.40. The USD/JPY was barely moved at 106.40. The USD lost about 0.4 % on Monday against the CAD. The CAD's rise was caused and pushed by news of proposed foreign takeover offers for Canadian companies. The USD/CAD closed at 1.0014. Technical analysis EUR/USD The last few trading days have established a strong support line around 1.583. The market came down to this level after it reached its record high over 1.60 last week. On Monday the EUR was stronger again and the market came back over 1.59. The market touched its trend line and could follow the upward trend. USD/CHF Yesterday the USD/CHF broke through its support line around 1.02. A second support is around 1.014. The market could now move on to this second support line. When the market breaks through this second support the short term down trend could hold on. Otherwise the market could recover and runs back to its resistance around 1.02. Pivot Points - Daily FX Support and Resistance Levels Daily Calendar & Key FX Events Varengold Bank IMPORTANT NOTIFICATION TO BE READ IN CONJUNCTION WITH THE CONTENTS OF THIS DOCUMENT This document is issued and approved by Varengold WPH Bank AG. The document is only intended for market counterparties and intermediate customers who are expected to make their own investment decisions without undue reliance on the information set out within the document. It may not be reproduced or further distributed, in whole or in part, for any purpose. Due to international laws/regulations not all financial instruments/services may be available to all clients. You should have informed yourself about and observe any such restrictions when considering a potential investment decision. This electronic communication and its contents are intended for the recipient only and may contain confidential, non public and/or privileged information. If you have received this electronic communication in error, please advise the sender immediately, and delete it from your system (if permitted by law). Varengold does not warrant the accuracy, completeness or correctness of any information herein or the appropriateness of any transaction. Nothing herein shall be construed as a recommendation or solicitation to purchase or sell any financial product. This communication is for informational urposes only. Any market or other views expressed herein are those of the sender only as of the date indicated and not of Varengold. Varengold reserves the right to consider any order sent electronically as not received unless it is confirmed verbally or through other means.