Daily FX Report

Good morning from wonderful Hamburg. It seems that there won't be any government help for the Lehman Brothers as the investment bank posted the record losses yesterday. Nevertheless, we hope for a successful day and wish all our clients good luck in trading with FOREX.

Markets review

Against the forecast of 5,000 people only, the employment of Australia rose in August by 14,600. The August jobless rate is down to 4.1% from 4.3% in July. The better-than-assumed data could be the reason why the AUD/USD rose to day's highs. The market touched a high of 0.8020 before recovering back to 0.8003 as profit-takings set in, traders say. As a long-term view the currency pair has reached its 1-year low as the market was trading under the 0.80 level. The AUD/JPY is up 0.1% at 85.95 after falling earlier towards a 2-year low of 84.98. According to some traders there are some Japanese life insurers who are trading the Cross/JPY pairs like day-traders in recent sessions, including today. 'They sold AUD/JPY in early trading as the AUD and NZD was tanking.' comments the market.

The fourth-largest US investment bank 'Lehman Brothers' posted a quarterly loss of $3.93 billion on Wednesday and said it plans to shed some assets, including selling around 55% of a portion of the investment management division. In spite of the data there were no effects in the dollar index. Against the expectations, the index rose 0.2% at 80.206 after touching its oneyear high at 80.253. The EUR/USD has reached its 1-year low of 1.3933. The low were reached partly due to the stop losses which were placed at 1.3950, traders said.

Technical analysis

EUR/USD

Since the middle of July the EUR/USD has traded in two bearish trend channels. After breaking trough the lower trend line of the first channel, the market has shown a stronger bearish movement. As you can see the market presents a similar face in the second trend channel, which could be a sign for a stronger downward movement again.

GBP/CHF

As accepted the GBP/CHF has shown after its break trough the 2.00 support level a bearish movement before touching its new support at 1.96. If the market enters its old trend channel with breaking trough the resistance we could expect a recovery with long potential.

Pivot Points - Daily FX Support and Resistance Levels

Daily Calendar & Key FX Events

Varengold Bank

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