Currency snapshot (major pairs)

Dollar index trading at 95.34 (-0.25%)

Strength meter (today so far) – Euro -0.17%, Franc -0.14%, Yen -0.30%, GBP -0.37%

Strength meter (since last week) – Euro +1.12%, Franc +1.05%, Yen -0.41%, GBP +0.91%

EUR/USD –

Trading at 1.156

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 (broken)

Economic release today –

• Flash manufacturing PMI declines to 54.6 I August.
• Flash services PMI unchanged at 54.4

      Commentary –

• The euro is trying to grind higher after a big selloff last week as President Trump verbally attacks the Fed’s rate hikes. However, down since last night on recovering USD. Active Call - Sell Euro at 1.218 with 1.17 as target; target revised lower to 1.095

GBP/USD –

Trading at 1.286

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 –

• CBI distributive trade survey index rose to 29 percent in August from 20 percent in July.

Commentary –

• The pound is up this week on a weaker dollar so far. 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 110.9

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 –

• Nikkei flash manufacturing PMI rose to 52.5 in August.

Commentary –

• The yen remains trapped in bull/bear fight amid risk aversion and a strong dollar. The worst performer of this week as equities rise.

USD/CHF –

Trading at 0.985

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 –

• Industrial production up 8.3 percent y/y in Q2.

Commentary –

• Franc is up in line with the euro this week.