Currency snapshot (major pairs)

Dollar index trading at 94.63 (+0.03%)

Strength meter (today so far) – Euro -0.15%, Franc +0.07%, Yen +0.29%, GBP -0.06%

Strength meter (since last week) – Euro +0.62%, Franc +1.32%, Yen -0.14%, GBP +1.50%

EUR/USD –

Trading at 1.169

Trend meter –

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

Support          

• Long term – 1.10, Medium term – 1.12, Short term – 1.15

Resistance –

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

Economic release today –

• Consumer confidence unchanged in August at -1.9.
• Services sentiment declined to 14.7 from 15.3 in the previous month.
• Industrial confidence declined to 5.5 in August from 5.9
• Economic sentiment index declined to 111.6 from 112.1
• Business climate declined to 1.22 in August from 1.3 in prior month.

      Commentary –

• The euro is trying to grind higher as the dollar continues to retrace gains. Active Call - Sell Euro at 1.218 with 1.17 as target; target revised lower to 1.095; Euro might correct towards 1.22 area

GBP/USD –

Trading at 1.302

Trend meter –

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

Support –

• Long term – 1.19, Medium term – 1.23, Short term – 1.27

Resistance –

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

Economic release today –

• M4 money supply up 2.1 percent y/y.
• In July, net lending to individuals was £4 billion.

Commentary –

• The pound is the best performer of the week on Brexit optimism. 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 – buy, Short term – Range/Buy

Support –

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

Resistance –

• Long term – 116, Medium term – 114, Short term – 112

Economic release today –

• Inflation and unemployment reports will be released at 23:30 GMT and industrial production at 23:50 GMT.

Commentary –

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

USD/CHF –

Trading at 0.97

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 –

• KOF leading index declined to 100.2 in August.

Commentary –

• Franc is a much better performer than the euro this week amid risk aversion stemming from Turkish currency concern.