Currency snapshot (major pairs)

Dollar index trading at 92.54 (+0.23%)

Strength meter (today so far) – Euro -0.33%, Franc -0.19%, Yen -0.19%, GBP +0.01%

Strength meter (since last week) – Euro +0.10%, Franc -0.58%, Yen -0.34%, GBP +0.40%

EUR/USD –

Trading at 1.193

Trend meter –

• Long term – Buy, Medium term – Buy, Short term – Breakout/ Buy

Support          

• Long term – 1.12, Medium term – 1.14, Short term – 1.16

Resistance –

• Long term – 1.22, Medium term – 1.19, Short term – 1.19 (broken)

Economic release today –

• Services sentiment grew to 14.9 in August
• Consumer confidence came unchanged at -1.5
• Industrial confidence improved to 5.1 in August
• Business climate grew to 1.09 in August
• Economic sentiment indicator improved to 111.9

Commentary –

• The euro gave up most of the gains on profit booking and as North Korea tension recedes.

GBP/USD –

Trading at 1.293

Trend meter –

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

Support –

• Long term – 1.26, Medium term – 1.275, Short term – 1.293

Resistance –

• Long term – 1.345, Medium term – 1.32, Short term – 1.32

Economic release today –

• Money supply grew 0.5 percent in July, up 4.4 percent y/y.
• Consumer credit for July came at £1.179 billion.
• July mortgage approvals rose to 68,869

Commentary –

• The pound is struggling as it failed to clear key down trend line. Active call – Sell pound at 1.291 with target at 1.24

USD/JPY –           

Trading at 110

Trend meter –

• Long term – Sell, Medium term – sell, Short term – Range/Sell

Support –

• Long term – 107, Medium term – 108.4, Short term – 109

Resistance –

• Long term – 116, Medium term – 114.2, Short term – 114.2

Economic release today –

• Industrial production report will be released at 23:50 GMT.

Commentary –

• The yen gave up gains and down for the week so far as North Korea risk aversion fades. Active call – Buy yen targeting 101

USD/CHF –

Trading at 0.957

Trend meter –

• Long term – Buy, Medium term – Range/sell, Short term – Range/Sell

Support –

• Long term – 0.90, Medium term – 0.92, Short term – 0.95 (broken)

Resistance –

• Long term – 1.04, Medium term – 1.01, Short term – 0.987

Economic release today –

• UBS consumption indicator rose to 1.38
• KOF leading indicator declined to 104.1 in August.
• Zew survey shows expectation index declined to 25 in August from 34.7 last month.

Commentary –

• Franc is down this week as risk aversion fades. Active call – sell pair targeting 0.92

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