Currency snapshot (major pairs)

Dollar index trading at 93.04 (+0.20%)

Strength meter (today so far) – Euro -0.24%, Franc -0.12%, Yen +0.16%, GBP -0.35%

Strength meter (since last week) – Euro -0.45%, Franc -1.08%, Yen -0.87%, GBP -0.02%

EUR/USD –

Trading at 1.187

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 (testing)

Economic release today –

• CPI inflation for August came at 1.5 percent y/y, while core at 1.3 percent y/y.
• Unemployment rate July came at 9.1 percent.

Commentary –

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

GBP/USD –

Trading at 1.287

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 –

• NIL

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 110.3

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 –

• Vehicle production up 1.4 percent y/y in July.
• Housing starts down 2.3 percent y/y in July.
• Construction orders 14.9 percent y/y in July.

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 0.964

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 –

• NIL

Commentary –

• Franc is the worst performer of the week. Active call – sell pair targeting 0.92

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest