Currency snapshot (major pairs)

Dollar index trading at 95.82 (+0.32%)

Strength meter (today so far) – Euro -0.04%, Franc -0.12%, Yen -0.05%, GBP -0.89%

Strength meter (since last week) – Euro -0.04%, Franc -0.12%, Yen -0.05%, GBP -0.89%

EUR/USD –

Trading at 1.123

Trend meter –

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

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 –

• Markit manufacturing PMI came at 52.6 for September.

Commentary –

• The euro continues to trade within a small band. 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 1.285

Trend meter –

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

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 –

• Manufacturing PMI rose to 55.4 in September.

Commentary –

• The pound is the worst performer of the day as Prime Minister May laid out exit plan in the tory conference on Sunday. In the short term, we expect the pound to drop towards 1.2 area. We expect the pound to reach parity.

USD/JPY –                      

Trading at 101.3

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 –

• Nikkei manufacturing PMI came at 50.4 for September.

Commentary –

• The yen is trading within thin band.  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 0.972

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 –

• SVME PMI came at 53.2 in September.

Commentary –

• Franc is likely to move in line with the euro again this week. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.