Currency snapshot (major pairs)

Dollar index trading at 96.41 (+0.44%).

Strength meter (today so far) - Euro -1.06%, Franc -0.67%, Yen +0.28%, GBP -0.54%

Strength meter (since last week) - Euro -0.78%, Franc -1.57%, Yen +1.21%, GBP -1.04%

EUR/USD -

Trading at 1.109

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, Immediate - 1.132

Economic release today -

• Euro zone services PMI rose to 54.4 in August from 54.3 in July.
• Retail sales grew by 0.4% in July from June.

Commentary -

• Euro is down sharply, breaking key interim support at 1.117 as Mario Draghi sounded dovish as ECB slashed growth and inflation forecast.

GBP/USD -

Trading at 1.522

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,

Resistance -

• Long term - 1.592-1.616, Medium term - 1.595, Short term - 1.55

Economic release today -

• Services PMI contracted further to 55.6 in August from 57.4 in July.

Commentary -

• Pound is declining along with Euro. Focus is on NFP report tomorrow.

USD/JPY -                      

Trading at 120.3

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 - 124.5

Economic release today -

• NIL

Commentary -

• Yen is the best performer today and this week as high level of concern regarding economic growth and high volatility is keeping the market well bid.

USD/CHF -                                                                                         

Trading at 0.977

Trend meter -

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

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 -

• NIL

Commentary -

• Franc is the worst performer today as SNB remains net seller of the currency.