Currency snapshot (major pairs)

Dollar index trading at 94.75 (+0.21%)

Strength meter (today so far) – Euro -0.30%, Franc -0.32%, Yen +0.06%, GBP +0.28%

Strength meter (since last week) – Euro -0.44%, Franc -0.75%, Yen -0.08%, GBP +1.30%

EUR/USD –

Trading at 1.127

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 – 1.143, Short term – 1.132

Economic release today –

• NIL

Commentary –

• The euro is down on long covering against the pound. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01. However, in the short run, Euro might ride higher.

GBP/USD –

Trading at 1.324

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 –

• BBA mortgage applications declined to 37,662, lowest in 18 months.

Commentary –

• The pound is the best performer of the day and the week too. We expect the pound to reach parity.

USD/JPY –                      

Trading at 100.2

Trend meter –

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

Support –

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

Resistance –

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

Economic release today –

• Leading economic index improved to 99.2 in June and coincident index improved to 111.1.
• Corporate service prices data will be released at 23:50 GMT.

Commentary –

• The yen is hovering around 100 area. 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 0.966

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 –

• Trade balance in July declined to 2.93 billion from 3.51 billion in June.

Commentary –

• Franc is moving in line with Euro today. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.