Daily FX Report
Good morning from beautiful Hamburg. On Friday It was the first time in 7.5 years that the EUR/USD loss over 3 cents in a single day. However, Varengold wishes a good start to your trading for this week.
Markets review
Cross/yen slid sharply in today's morning trading session, with dealers keeping their attention on whether Japanese traders may close positions after having made big bets that the AUD and NZD won't lose too much ground. The EUR/JPY lost more than 1% to its lowest session level of 163.66, reflecting the unwinding of hefty long positions in that cross, as well as the EUR/USD. The AUD/JPY was down 0.7% and hit a low of 96.99, while the NZDJPY was up 0.5% to 76.77. The Reserve Bank of Australia said the economy looked to be slowing enough to significantly reduce inflation over time, providing growing scope to ease interest rates from 12-year highs.
The USD rose further, with the dollar index striking a 6-month high as more market players close their long positions in EUR/USD. The EUR/USD reached its lowest level at 1.4908. Some Traders are looking to see if Asian central banks help prop up the EUR with any buying and whether the single currency can find some support after tumbling 2.1 % on Friday for its biggest 1-day drop in 7.5 years.
Technical analysis
EUR/CAD
Since the beginning of June the EUR/CAD is trading in a bullish trend. After touching the resistance level for the third time at 1.615, the market recovered and is going to touch its trend line. If the market breaks through its bullish trend line, it could comes up a recovery phase with bearish or sideways movements.
GBP/CAD
The GBP/CAD has shown a bullish face since the middle of May. After touching the support level at 1.99 twice, the market seemed to rise and leave the resistance. If the market doesn't recover under its support at 2.04, we could expect an ongoing increasing movement.
Pivot Points - Daily FX Support and Resistance Levels
Daily Calendar & Key FX Events
Varengold Bank
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