Currency snapshot (major pairs)

Dollar index trading at 94.96 (+0.27%)

Strength meter (today so far) – Euro -0.27%, Franc -0.01%, Yen +0.19%, GBP -0.32%

Strength meter (since last week) – Euro +0.13%, Franc +1.45%, Yen +0.36%, GBP +1.05%

EUR/USD –

Trading at 1.163

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 –

• July unemployment rate at 8.2 percent.
• Flash reports showed CPI inflation easing to 2 percent y/y in August.

      Commentary –

• The euro is giving up earlier gains as the USD recovers. Active Call - Sell Euro at 1.218 with 1.17 as a target; target revised lower to 1.095; Euro might correct towards 1.22 area

GBP/USD –

Trading at 1.297

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 –

• Nationwide house price index up 2 percent y/y.

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 110.8

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 –

• Housing starts down 0.7 percent in July.
• Construction orders down 9.3 percent in July.

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 0.969

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 the best performer this week amid risk aversion stemming from Turkish currency concern.