Currency snapshot (major pairs)

Dollar index trading at 97.95 (-0.16%)

Strength meter (today so far) – Euro +0.22%, Franc +0.13%, Yen -0.10%, GBP -0.17%

Strength meter (since last week) – Euro +0.22%, Franc +0.13%, Yen -0.10%, GBP -0.17%

EUR/USD –

Trading at 1.099

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 –

• CPI is up 0.4 percent y/y in September and 0.8 percent y/y for core components.

Commentary –

• The euro is moving in line with our expectations. 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 1.215

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 –

• CB leading indicator for September will be published at 13:30 GMT.     

Commentary –

• The pound has come closer to our target. We recommend partial profit bookings for short term traders. 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 104.1

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 –

• Industrial production rose 4.5 percent y/y.

Commentary –

• The yen is now hovering around key support, may against the dollar from here. 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 0.989

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 likely to continue moving in line with euro. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.