Currency snapshot (major pairs)

Dollar index trading at 94.43 (-0.12%)

Strength meter (today so far) – Euro +0.17%, Franc +0.16%, Yen +0.08%, GBP +0.45%

Strength meter (since last week) – Euro +0.61%, Franc +0.12%, Yen -0.22%, GBP +1.13%

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 –

• NIL

      Commentary –

• The euro is up this week as the dollar weakens against majors on rate hike speculation. 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 1.32

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 –

• Retail sales up 3.3 percent y/y and by 3.5 percent y/y excluding fuel.

Commentary –

• The pound is still the best performer of the week on the possibility of a Brexit deal by November. However, May reportedly going to reject EU’s offering on Irish border. 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 112.2

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 –

• CPI inflation report will be released at 23:30 GMT.

Commentary –

• The yen remains trapped in bull/bear fight amid risk aversion and a strong dollar. The worst performer this week on lack of risk aversion despite a weaker dollar.  

USD/CHF –

Trading at 0.966

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 –

• Trade balance came at 2.134 billion franc.
• SNB kept monetary policy unchanged at today’s meeting with interest rate at 0.75 percent.

Commentary –

• Franc is a much worse performer than the euro this week.