Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Aug 10 09 08:00 GMT |

Good morning and welcome to the new week. The USD made record movements against a basket of currencies on Friday after the U.S. unemployment rate fell from 9.5% to 9.4%. The economists expected a rise of 0.1%. Have a nice start in the new week Markets review On Friday the strong USD climbed against the EUR and reached the level at around 1.42 on signs that the U.S. economy is emerging from recession, boosting the appeal of the nation's assets. The USD has reached a level near to a seven-week high against the JPY as U.S. employers eliminated fewer jobs last month than economists expected. U.S. employers eliminated 247,000 jobs in July after a revised decrease of 443,000 in the previous month, the Labor Department reported on Friday. The USD-Index recovered on Friday from its lowest level this year. It climbed to a high of 79.073 after it opened around 78.00. Today it pulled a little back and trades at 78.76. The USD climbed over 200 pips against the JPY and fell back from its record low against the EUR. The gains in the USD on August 7th marked a return to the view that good U.S. economic news should benefit the currency as traders speculated that the Fed may boost interest rates sooner rather than later. The GBP also fell against the USD, touching a low at 1.6684 and rebounded in the early Tokyo trading hours and trades currently around 1.6710 Technical analysis AUD/USD Since the beginning of August the AUD has been moving under the resistance level of 0.8450. After touching the 0.8340 support level for the first time since the end of the last month, the market has crossed the bearish trend line. This movement could be a sign for a trend reversal and an increase to the resistance around 0.8450. If the market crosses the 0.8340, it could come down to the 0.8240 support level. USD/CHF The volatile USD/CHF is trading under a downward trend line. There are three resistance lines, which could be a sign for a further weak USD against the CHF. One resistance is around the 1.098, one around the 1.094 and furthermore there is one bearish resistance trend line. If the market doesn't break the downward line clearly, it could continue the bearish trend and pull back to the downside 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.