Currency snapshot (major pairs)

Dollar index trading at 95.73 (+0.11%)

Strength meter (today so far) – Euro -0.09%, Franc -0.05%, Yen -0.39%, GBP -0.22%

Strength meter (since last week) – Euro -0.09%, Franc -0.05%, Yen -0.39%, GBP -0.22%

EUR/USD –

Trading at 1.116

Trend meter –

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

Support

• Long term – 1.06, Medium term – 1.08, Short term – 1.09   

Resistance –

• Long term – 1.16, Medium term – 1.116, Short term – 1.116

Economic release today –

• Markit manufacturing PMI rose to 52.

Commentary –

• Euro is testing key resistance around 1.116. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01

GBP/USD –

Trading at 1.318

Trend meter –

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

Support –

• Long term – 1.2, Medium term – 1.27, Short term – 1.29 

Resistance –

• Long term – 1.39, Medium term – 1.35, Short term – 1.34

Economic release today –

• UK manufacturing PMI declined to 48.2 in July as post-referendum shock continues.

Commentary –

• The pound is treading water around 1.32 awaiting further cue. We expect the pound to reach parity.

USD/JPY –                      

Trading at 102.3

Trend meter –

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

Support –

• Long term – 91, Medium term – 98, Short term – 100

Resistance –

• Long term – 111, Medium term – 107, Short term – 107

Economic release today –

• Nikkei manufacturing PMI for July came at 49.3

Commentary –

• Yen is the worst performer of the day as investors took profits after two days of big gains. Active call – Buy Yen @119.5 with stop loss around 123.8 and target at 114 and 110, 108.9 and 98.5. All targets reached, new target 90 added. Yen may retrace to 111 per dollar if BOJ intervenes.

USD/CHF –        

Trading at 0.968

Trend meter –

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

Support –

• Long term – 0.9, Medium term – 0.927, Short term – 0.95

Resistance –

• Long term – 1.037, Medium term – 1.01, Short term – 0.994

Economic release today –

• NIL

Commentary –

• Franc is marginally down today. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.