Currency snapshot (major pairs)

Dollar index trading at 94.72 (-0.04%)

Strength meter (today so far) – Euro +0.23%, Franc +0.16%, Yen +0.09%, GBP -0.40%

Strength meter (since last week) – Euro -0.25%, Franc -0.68%, Yen -0.33%, GBP +0.93%

EUR/USD –

Trading at 1.129

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 hovering around 1.13 area, focus is on Yellen’s speech in Jackson Hole. 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 1.319

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 –

• CBI trade survey came much better than expected.

Commentary –

• The pound retraced some of the gains ahead of Yellen’s speech. We expect the pound to reach parity.

USD/JPY –                      

Trading at 100.5

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 –

• Tokyo and National CPI data will be published at 23:30 GMT.

Commentary –

• The yen is still 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 –

• Industrial production is down 1.2 percent on quarterly basis and 5.6 percent on yearly basis.

Commentary –

• Franc is the worst performer of the week. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.