Click here if you are unable to view the charts in this report
|
FX Daily Hotline |
|

The Korean Won is not one of the most popular currencies to trade on the international markets. However, given the country's economic strength (the 15th largest in the world by GDP), we would suggest that this is an FX pair worthy of more attention.
Our automated scanners have identified that the USD Dollar has posted a "peak" Key Day Reversal against the Won. We note that this event has happened at the slightly ill-defined sideways activity level of KRW1200.
Given that price action also seems to be reasserting the pattern of falling highs from June, we open a position in this pair - short the USD and long the KRW.

Elsewhere, we are a little short of trading ideas for today's hotline, but we highlight the USD at the top of the range against the Canadian unit. For the moment we hold back from attempting to short this pair - the tail down on last night's price action suggests that there are buyers waiting in the wings.
Please note that there will be no FX Hotline on Monday due to the UK public holiday.

The Swiss Franc appears to be still the currency of choice in the FX markets - a decision process determined by not so much as a beauty parade but more "which currency is the least awful. As we know, the other currency to benefit from inflows is the Japanese Yen. This latter currency makes less sense as a defensive hold in the long term (think of Japan's dreadful public debt situation and poor demographics), but momentum is all for the moment. We have overlaid the CHF index and JPY index for comparison.
| Symbol | Stock | Close | % Change |
| EURMXN | Euro/Mexican Peso | 16.6184 | +1.1% |
| CADMXN | Canadian Dollar/Mexican Peso | 12.3537 | +0.8% |
| MXN | US$/Mexican Peso | 13.0693 | +0.7% |
| AUDJPY | Australian Dollar/Japanese Yen | 74.85 | +0.5% |
| NZD | New Zealand Dollar/US Dollar | 0.7029 | +0.5% |
| Symbol | Stock | Close | % Change |
| CHF | US$/Swiss Franc | 1.024 | -0.6% |
| DXY | US Dollar Index | 82.884 | -0.5% |
| USDEUR | US$/Euro | 0.7864 | -0.5% |
| KRW | South Korean Won per 1 US Dollar | 1189.95 | -0.5% |
| SEK | US$/Swedish Krona | 7.4136 | -0.5% |
P&F Breakouts: Aug 26, 2010.
None Found
Key Day Reversals : August 26, 2010Code Name Signal Latest Close Change KRW South Korean Won per 1 US Dollar Peak 1189.95 -6.05
MA Crossovers : August 26, 2010
None found
Moving Average (MA) crossovers identify longer-term changes of trend. We scan for "Golden" (bullish) and "Dead" (bearish) signals occurring when an instrument’s 50-day MA crosses its 200-day MA.
| Date | Stock | Code | Type | Open Price | Current Price | % P&L | Stop | Comment |
| 12 May 2010 | Turkish Lira Trade Weighted | TWI TYSP | Long | 92.95 | 91.99 | -1.03% | 86 | |
| 12 Aug 2010 | US$/South African Rand | ZAR | Long | 7.2907 | 7.3155 | +0.34% | 7.1 | |
| 18 Aug 2010 | US Dollar Index | DXY | Long | 82.223 | 82.884 | +0.80% | 81.90 | |
| 23 Aug 2010 | Euro/Japanese Yen | EURJPY | Short | 107.10 | 107.39 | -0.27% | 109.20 |
| Symbol | Name | Comment | Close | 1 day | Support | Resistance |
| DXY | US Dollar Index | Probes above the prior high and the falling 50-day MA. | 82.884 | -0.5% | 79.507/80.031 | 83.451 |
| EUR | Euro/US Dollar | Reasserting down from the falling 200-day MA. | 1.2716 | +0.5% | 1.2733 | 1.3416/1.3361 |
| GBPUSD | US Dollar per British Pound | recovers the dip below $1.55 | 1.5528 | +0.5% | 1.5125 | 1.6069/1.5999 |
| JPY | US$/Japanese Yen | Downward dynamic reafirms major downtrend. | 84.45 | -0.2% | 79.75/85 | 88.12/86.45 |
| CHF | US$/Swiss Franc | USD reasserts the downtrend against the CHF. | 1.024 | -0.6% | 1.0131/1.0332 | 1.0641/1.0619 |
| CAD | US$/Canadian Dollar | Pair trades a choppy range. USD encounters resistance intraday above 1.06. | 1.0579 | -0.2% | 1.0014/1.0108? | 1.0587 |
| AUDJPY | Australian Dollar/Japanese Yen | Finds support at the bottom of the range. | 74.85 | +0.5% | 71.9/72.69 | 80.87/79.43 |
| AUDNZD | Australian Dollar/New Zealand Dollar | AUD consolidates the recent rally. | 1.2608 | +0.2% | 1.2209/1.24 | 1.2918/1.28? |
| EURJPY | Euro/Japanese Yen | Significant break to new low. | 107.39 | +0.3% | 107.32 | 115.49/114.74 |
| EURGBP | Euro/Pounds Sterling | Holds the decline towards the Jun low. | 0.81888 | -0.0% | 0.807 | 0.8532/0.8363 |
| GBPJPY | GBP/Japanese Yen | Pound shows sharp drop onto support from May lows. | 131.13 | +0.3% | 130.43 | 140.58/137.79 |
| GBPCHF | GBP/Swiss Franc | Tail down suggests support for GBP at the bottom of the range. | 1.5901 | -0.2% | 1.5833/1.6181 | 1.6924/1.676 |
| EURCHF | Euro/Swiss Franc | Euro probes below the late June lows. New all-time low. | 1.3023 | -0.2% | / | 1.4041/1.3924 |
| CHFJPY | Sfr/Japanese Yen | Choppy price action contrained by pattern of falling highs. | 82.47 | +0.5% | 77.98/80.2 | 84.51/82.6 |
| ZAR | US$/South African Rand | USD rallies from the floor at ZAR7.2. | 7.3155 | -0.2% | 7.2 | 7.6758/7.3828 |
| AUD | Australian Dollar/US Dollar | Appears to be finding support at the slightly ill-defined 0.88 sideways level. | 0.8877 | +0.2% | 0.8634/0.8906 | 0.94/0.9222 |
Also available online at www.investorsintelligence.com. Unauthorized forwarding, copying or reproduction of this report will be treated as a breach of copyright. To subscribe, visit the website or contact Investors Intelligence on +44 (0)20 7352 5435 or email support@investorsintelligence.com.
This report has been produced and compiled by Investors Intelligence, a division of Stockcube Research Limited which is authorised and regulated by the Financial Services Authority, according to the requirements of the Financial Services and Markets Act 2000. It is distributed by Stockcube and is provided for information purposes only. Under no circumstances is it to be used or considered as an offer to sell, or a solicitation of any offer to buy. While all reasonable care has been taken to ensure that the information contained herein is not untrue or misleading at the time of publication, we make no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time Stockcube and any of its officers or employees may, to the extent permitted by law, have a position or otherwise be interested in any transactions, in any investments (including derivatives) directly or indirectly the subject of this report. Also Stockcube may from time to time perform other services (including acting as adviser or manager) for any company mentioned in this report. The value of securities can go down as well as up, and you may not get back the full amount you originally invested. Derivatives in particular are high risk, high reward investment instruments and an investor may lose some or all of his/her original investment. If you make an investment in securities that are denominated in a currency other than that of GB Pounds you are warned that changes in rates of foreign exchange may have an adverse effect on the value, price or income of the investment. The investments referred to herein may not be suitable investments for all persons accessing these pages. You should carefully consider whether all or any of these are suitable investments for you and if in any doubt consult an independent adviser. This report is prepared solely for the information of clients of Stockcube who are expected to make their own investment decisions without reliance on this report. Neither Stockcube nor any officer of Stockcube accepts any liability whatsoever for any direct and consequential loss arising from use of this report or its contents. This report may not be reproduced, distributed or published by any recipient for any purpose without the prior express consent of Stockcube.
Copyright 2005 by Stockcube Research Ltd.
