Currency snapshot (major pairs)

Dollar index trading at 94.89 (+0.24%)

Strength meter (today so far) – Euro -0.28%, Franc -0.18%, Yen +0.18%, GBP -0.48%

Strength meter (since last week) – Euro -0.19%, Franc -0.02%, Yen -0.39%, GBP -0.21%

EUR/USD –

Trading at 1.162

Trend meter –

• Long term – Buy, Medium term – Buy, Short term – Sell

Support          

• Long term – 1.12, Medium term – 1.145, Short term – 1.145

Resistance –

• Long term – 1.22, Medium term – 1.2, Short term – 1.18

Economic release today –

• PPI inflation up 3.6 percent y/y in June.

      Commentary –

• The euro is consolidating in a range of 350 pips since May. The consolidation continuing even after ECB. Down this week, as the dollar recovers on hawkish FOMC. Active Call - Sell Euro at 1.218 with 1.17 as target; target revised lower to 1.095

GBP/USD –

Trading at 1.306

Trend meter –

• Long term – Sell, Medium term – Sell, Short term – Sell

Support –

• Long term – 1.24, Medium term – 1.27, Short term – 1.3

Resistance –

• Long term – 1.37 Medium term – 1.35, Short term – 1.33

Economic release today –

• Construction PMI rose to 55.8 in July.
• BoE hiked rates by 25 basis points but maintained dovish outlook.

Commentary –

• The pound is down this week on hawkish FOMC and dovish BoE. Active call-  short term sell at 1.413 targeting 1.375 (target reached); extended to 1.354 (target reached); extended to 1.25

USD/JPY –           

Trading at 111.4

Trend meter -

• Long term – Sell, Medium term – sell, Short term – Range/Buy

Support –

• Long term – 104.2, Medium term – 106.2, Short term – 109.2

Resistance –

• Long term – 114, Medium term – 111, Short term – 111

Economic release today –

• NIL

Commentary –

• The yen is the worst performer of the week on dovish BoJ but recovered loss on risk aversion as equities slide.

USD/CHF –

Trading at 0.994

Trend meter –

• Long term – Buy, Medium term – Range/sell, Short term – Range/Buy

Support –

• Long term – 0.90, Medium term – 0.92, Short term – 0.95

Resistance –

• Long term – 1.03, Medium term – 1.00, Short term – 1.00

Economic release today –

• SECO consumer climate index declined to -7 in July.
• Real retail sales up 0.3 percent y/y in June.
• SVME PMI rose to 61.9 in July.

Commentary –

• Franc is slightly better performer than the euro this week.