Currency snapshot (major pairs)

Dollar index trading at 95.62 (-0.19%)

Strength meter (today so far) – Euro +0.1%, Franc +0.11%, Yen +0.21%, GBP +0.33%

Strength meter (since last week) – Euro +0.1%, Franc +0.04%, Yen +0.47%, GBP +0.48%

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 – 1.143, Short term – 1.132

Economic release today –

• Eurozone GDP grew by 1.6 percent in the second quarter.

Commentary –

• The euro is continuing to consolidate below 1.12 area ahead of ECB. 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 1.335

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 –

• NIL

Commentary –

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

USD/JPY –                      

Trading at 103.3

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 much better performer this week after disastrous last week.  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 0.979

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