Currency snapshot (major pairs)

Dollar index trading at 95.69 (+0.44%).

Strength meter (today so far) - Euro -0.73%, Franc -0.62%, Yen -0.27%, GBP -0.33%

Strength meter (since last week) - Euro -1.12%, Franc -1.28%, Yen +1.35%, GBP -1.66%

EUR/USD -

Trading at 1.125

Trend meter -

• Long term - Buy, Medium term - Range, Short term - Range/Sell

Support

• Long term - 1.048-1.036, Medium term - 1.065-1.06, Short term - 1.08-1.085

Resistance -

• Long term - 1.175-1.18, Medium term - 1.172, Short term - 1.163

Economic release today -

• M3 money supply grew 5.3% in July from a year ago.
• Private loans rose by 0.9% in July.

Commentary -

• Euro wiped out more than 2% of its initial gains against Dollar, and now in negative for the week. Euro is close to its initial target of 1.12.

GBP/USD -

Trading at 1.542

Trend meter -

• Long term - Buy, Medium term - Range, Short term - Range/Sell

Support -

• Long term - 1.425-1.417, Medium term - 1.497-1.49, Short term - 1.518-1.512, Immediate - 1.544-1.54

Resistance -

• Long term - 1.592-1.616, Medium term - 1.595, Short term - 1.58

Economic release today -

• Nationwide house prices rose by 0.3% in August from July.
• GFK consumer confidence to be released at 23:00 GMT.

Commentary -

• Pound is the worst performer this week and further drop seems very much likely given a key trend line break by Pound. Pound is challenging immediate support level breaking which might lead to drop towards short term support around 1.515.

USD/JPY -                      

Trading at 120.4

Trend meter -

• Long term - Buy, Medium term - Range/Buy, Short term - Range/Sell

Support -

• Long term - 113.7-112.9, Medium term - 115.7-115, Short term - 118

Resistance -

• Long term - 130, Medium term - 127.5, Short term - 127.5, Immediate - 120.5

Economic release today -

• Japan will release national and Tokyo CPI at 23:30 GMT, along with unemployment rate and retail trade report.

Commentary -

• Yen is still the best performer this week however slowly losing ground as risk appetite is recovering pushing equities higher.

USD/CHF -                                                                                         

Trading at 0.958

Trend meter -

• Long term - Buy, Medium term - Range, Short term - Range

Support -

• Long term - 0.88, Medium term - 0.90, Short term - 0.93

Resistance -

• Long term - 1.174, Medium term - 1.025-1.02, Short term - 0.984-0.987

Economic release today -

• Industrial production dropped by -2.5% in second quarter.

Commentary -

• Franc dropped further against Dollar as risk aversion faded pushing Dollar higher across board.