Daily FX Report

Daily Forex Technicals | Written by Varengold Bank | Dec 02 09 09:45 GMT |

Good morning and welcome to the Daily FX Report. The December began in Hamburg very cold and froze the car glasses for the first time this winter. However, we wish you a prosperous trading day Markets review The JPY weakened against the 16 most-traded currencies as signs of a faster recovering global economy increased demand for riskier assets. Economists expect today a report which will show that the U.S. companies cut fewer jobs than originally expected. Also the German unemployment rate fell unexpectedly in November by 0.1 percent from a month earlier, the German Federal Labor Agency said on Tuesday. The EUR/USD traded near a 16-month high as European finance leaders played down potential risks to their banks from Dubai's debt problems. The GBP/USD recovered after three days of losses after a U.K. report appeared that the average costs of a home in the U.K. increased 0.5 percent in November, for a seventh month. The AUD/USD strengthened as gold, the nation's third most-valuable raw material export, climbed to a new record high on Tuesday. The CHF rose to parity against the USD as a report showed that the national economy returned to growth in the third quarter, the Swiss GDP rose 0.3 percent from a quarter earlier. Technical analysis EUR/USD The EUR/USD continues trading in a longterm bullish environment but failed to cross its first weekly pivot resistance line for the fourth time. Now it seems that the bulls taking some profit, the DMI indicate a decreasing upward trend and we have to allow for declines near to the second Fibonacci fan. If this support is not strong enough the EUR could find a much stronger support at its pivot point around 1.4987 USD/CZK After the currency pair broke through its resistance lines at 17.221 rather 17.4691 it rose to its highest level in November. Since that time the USD rebounded and fell below both resistances and touched its mid-term trend-line. Could this line give enough support to cross the 17.2210 level, the currency pair may aim the 17.4691 again. Also the RSI showed an oversold market and may support the bulls. 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.