Currency snapshot (major pairs)

Dollar index trading at 94.61 (-0.12%)

Strength meter (today so far) – Euro +0.00%, Franc -0.20%, Yen +0.24%, GBP +0.14%

Strength meter (since last week) – Euro -0.27%, Franc -1.01%, Yen -0.18%, GBP +1.09%

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 –

• Money supply grew by 4.8 percent in July from a year back.
• Private loans grew by 1.8 percent.

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 1.321

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 –

• GDP grew by 0.6 percent in the second quarter as expected. Total business investment grew by 0.5 percent and services grew by 0.5 percent.

Commentary –

• The pound is yet to break above key resistance around 1.327. We expect the pound to reach parity.

USD/JPY –                      

Trading at 100.3

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 –

• NIL

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 0.969

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