investors intelligence
Generating first rate investment advice since 1947
Sample Research


Click here if you are unable to view the charts in this report

FX Daily Hotline 
11 May 2015     By C Dichio, Analyst

Chart of the day: Ł strongly renews rally v Yen


Spurred by the euphoria that followed Thursday's election, the British Pound jumped up generally.  Against the Japanese Yen, a 1.4% gain was recorded for Friday's session, as the UK unit renewed the short-term rally and also traded above the February ceiling near Y185.  This leaves the yearend highs at Y187.803, plotted on 29 December, and Y189.714, drawn on 5 of that month, as the next chart targets.  We would point out, however, that the RSI is back in overbought territory.



Daily Comment:


A 2.3% gain was registered by the British Pound against the Swiss Franc.  The chart shows Sterling reversing the short-term decline from the 'Peak' Key Day Reversal high of 29 April at SF1.4711.  The failed break under the March/April floor gives rise to 'bear trap' hopes for a further recovery back towards that barrier over the near term.

One notes, that at the time of writing, the UK currency is up 1.32% versus the New Zealand Dollar.  Changing hands at NZ$2.0890 a little while ago, the Pound has reached up towards the late-2011 to early-2015 ceiling at NZ$2.1058.  The RSI is overbought, though, should an eventual breakout occur, a huge base will be in place.  We will consider buying Sterling if that should ultimately happen.

The Euro has shed 1.4% against the South African Rand.  This has taken the rate back beneath the sideways area along R13.5000.  Unless a quick reversal occurs, there is a danger of a further 'bull trap' decline towards support within the R13 region, though one notes potential support beforehand from former resistance at the 50-day MA.

This bearish action is observed by the single European currency versus Mexican Peso.  Appearing a second time in the 'Losers' list v Peso, the Euro has confirmed the failed break over the February ceiling.  If the shorter-term MA fails to convert into support, the rate could fall towards next possible support in the MP16.50 area.


Gainers / Losers
Top 5 Gains.
SymbolStockClose% Change
GBPCHFGBP/Swiss Franc1.4383+2.3%
TWI BPSPUK Sterling Index87.75+1.6%
GBPJPYGBP/Japanese Yen185.088+1.4%
GBPUSDBritish Pound/US Dollar1.5455+1.4%
Top 5 Losses.
SymbolStockClose% Change
EURMXNEuro/Mexican Peso16.9343-1.9%
EURGBPEuro/Pounds Sterling0.7251-1.9%
BRLUS$/Brazilian Real2.9746-1.7%
EURZAREuro/South African Rand13.3615-1.4%
MXNUS$/Mexican Peso15.1208-1.3%
The FX Model Portfolio
Foreign Exchange Model Portfolio Longs
Date Stock Code Type Open Price Current Price % P&L Target Stop
5 May 2015 Australian Dollar/Japanese Yen AUDJPY Long 95.187 94.983 -0.21% 91
5 May 2015 Australian Dollar/US Dollar AUD Long 0.7942 0.7932 -0.13% 0.75
6 May 2015 Euro/Pounds Sterling EURGBP Long 0.74 0.7251 -2.01% 0.71
Foreign Exchange Model Portfolio Shorts
Date Stock Code Type Open Price Current Price % P&L Target Stop
27 Apr 2015 US$/Canadian Dollar CAD Short 1.2086 1.2071 +0.12% 1.25
28 Apr 2015 Euro/Australian Dollar EURAUD Short 1.37 1.4127 -3.12% 1.45
28 Apr 2015 South Korean Won per 1 US Dollar KRW Short 1072.15 1088.34 -1.51% 1105
  • We watch to buy � v NZ$.


Daily Analysis

Symbol Name Comment Close 1 day Support Resistance
DXYUS Dollar IndexHolds the oversold fall from the s-t top near the Feb floor (93.25).94.794+0.2% 87.627/93.25100.39/95.946
EUREuro/US DollarOverbought rally towards the Feb ceiling (1.1534) slows.1.1199-0.6% 1.0458/1.10661.1679/1.1534
GBPUSDBritish Pound/US DollarJumps up to test resistance at the Feb high; near the 200-day MA.1.5455+1.4% 1.4566/1.50891.5826/1.5552
CADUS$/Canadian DollarPauses the fall from the s-t top.1.2071-0.5% 1.1192/1.1803/1.19411.2835/1.2306
JPYUS$/Japanese YenExtends the Dec-May trading band.119.76+0.0% 113.86/115.57124.14/122.03
ZARUS$/South African RandHolds the l-t choppy uptrend.11.9183-1.0% 11.3626/11.66912.5252
KRWSouth Korean Won per 1 US DollarCounter move from oversold.1088.34-0.1% 1045.58/1065.21?1112.4/1102
CHFUS$/Swiss FrancOversold fall from the s-t top finds intraday support at 0.9072.0.9303+0.9% 0.85011.0129/0.9863
EURGBPEuro/Pounds SterlingFalls back into the base.0.7251-1.9% 0.7014/0.71180.7592/0.7483
EURJPYEuro/Japanese YenOverbought recovery slows slightly by the Feb ceiling and 200-day MA.134.18-0.5% 124.94/126.1137.64/136.7
EURCHFEuro/Swiss FrancRemains penned in by resistance from the 50-day MA.1.0427+0.4% 0.9776/1.02341.2097/1.0812
GBPJPYGBP/Japanese YenStrongly renews the s-t rally. RSI overbought again.185.088+1.4% 174.884/180.96187.803
GBPCHFGBP/Swiss FrancReverses the fall from the 'Peak' KDR of 29 Apr.1.4383+2.3% 1.28391.38171.5195/1.4711
CHFJPYSfr/Japanese YenRecovery from oversold and the 200-day MA slows.123.813+0.2% 114.085/119.917155.367/130.069
AUDJPYAustralian Dollar/Japanese YenConsolidates the base breakout.94.983+0.3% 89.377/93.58497.396/95.952
AUDNZDAustralian Dollar/New Zealand DollarHolds the fall from the 50-day MA and 'Peak' KDR of 11 Mar near record lows. RSI low.1.0196+0.1% /1.0798/1.0531
AUDAustralian Dollar/US DollarConsolidates the move over the s-t band/base.0.7932+0.3% 0.7533/0.77880.8295/0.8076

Recommend a friend! Tell your friends to mention your name when subscribing to Investors Intelligence, and get a months free access to a service of your choice! For more information, email

Also available online at 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 4001 or email

This report has been produced and compiled by Investors Intelligence, a division of Stockcube Research Limited which is authorised and regulated by the Financial Conduct Authority. 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 2015 by Stockcube Research Ltd.

Subscribe here: