Currency snapshot (major pairs)

Dollar index trading at 96.37 (+0.05%)

Strength meter (today so far) – Euro -0.07%, Franc +0.22%, Yen -0.21%, GBP +0.14%

Strength meter (since last week) – Euro -0.14%, Franc +0.32%, Yen -0.11%, GBP +0.35%

EUR/USD –

Trading at 1.139

Trend meter –

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

Support          

• Long term – 1.10, Medium term – 1.12, Short term – 1.12

Resistance –

• Long term – 1.22, Medium term – 1.18, Short term – 1.15

Economic release today –

• GDP grew by 2.2 percent y/y in Q2.
• Industrial production up 2.5 percent y/y.
• Zew survey economic sentiment improves to -11.1 in August from -18.7 in July.

      Commentary –

• The euro is recovering amid a decline in the dollar all across the board. Active Call - Sell Euro at 1.218 with 1.17 as target; target revised lower to 1.095

GBP/USD –

Trading at 1.278

Trend meter –

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

Support –

• Long term – 1.10, Medium term – 1.17, Short term – 1.25

Resistance –

• Long term – 1.35 Medium term – 1.32, Short term – 1.305

Economic release today –

• ILO unemployment rate at 4 percent in June.
• Average earnings up 2.7 percent y/y excluding bonus and up by 2.4 percent excluding it.

Commentary –

• The pound is up this week after a big selloff last week. The focus will be on inflation report and Brexit talks later in the week. 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 110.8

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 –

• Industrial production down by 0.9 percent y/y.

Commentary –

• The yen gave up earlier gains as the equities recover.

USD/CHF –

Trading at 0.991

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 –

• NIL

Commentary –

• Franc is much better performer than the euro this week amid safe haven bids.