Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Nov 25 08 08:50 GMT |

Good morning from frosty Hamburg. After the important decision of the government in Washington to support the Citigroup, the Stock markets showed a lot of gains as well as the FOREX market which has also shown some surprising movements Markets review Yesterday the EUR/USD rose 2.8 % after U.S. stocks has shown a lot of gains and the crude oil price came back with its biggest 2-day gain in two months to 54 USD a barrel on expectations of another OPEC oil conveyance cut. Another reason of this huge move in Stocks and the EUR/USD could be the important decision in Washington as the Government agreed to pump 20 bln USD into struggling Citigroup, the second-largest bank of the United States. The EUR/USD touched its 2-week high at 1.2927 before coming back below the 1.29 level again. The USD also lost a lot against the CAD as the pair fell almost 3 % and closed the day at 1.2298. In spite of the national holiday in Japan on Monday the EUR/JPY gained around 5 % from its low at 119.60 to its high at 126. The EUR came back and trades currently around 123.90 against the JPY. 'The EUR is in a correction stage from its overnight rally against the JPY and given the thin volume, it could easily fall 1-2 JPY,' said a Japanese trader. 'In the short term, however, there is more interest in buying the EUR against the JPY,' he adds. The USD/JPY fell 1 % to a low at 96.30 on the day while the Nikkei is up about 5 % this morning Technical analysis EUR/GBP Since the beginning of November the EUR has shown huge gains against the GBP. After its break through the 0.82 resistance line and touching its all-time high at 0.8662 the market came back and trades currently near the bullish trend line. If the pair breaks this line it could fall further toward the 0.82 support level EUR/CAD As supposed the EUR/CAD recovered very strong after it reached the lower Bollinger band at the beginning of this month. The currency pair has already touched the upper Bollinger band and it could be that the market is ready for a repeatedly return towards the middle and lower Bollinger bands 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.