Currency snapshot (major pairs)

Dollar index trading at 92.63 (+0.03%)

Strength meter (today so far) – Euro -0.05%, Franc -0.14%, Yen +0.39%, GBP +0.29%

Strength meter (since last week) – Euro +0.37%, Franc +0.28%, Yen +0.74%, GBP +0.23%

EUR/USD –

Trading at 1.189

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 –

• Markit services PMI came at 54.7 in August.
• Retail sales down 0.3 percent in July, up 2.6 percent from a year ago.

Commentary –

• The euro is consolidating ahead of ECB meeting later in the week.

GBP/USD –

Trading at 1.296

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 –

• Markit services PMI declines to 53.2 in August.

Commentary –

• The pound is struggling to gain 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 109.4

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 –

• NIL

Commentary –

• The yen is the best performer of the week so far over North Korea’s nuclear test. Active call – Buy yen targeting 101

USD/CHF –

Trading at 0.96

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 –

• Swiss GDP grew 0.3 percent q/q in Q2.
• Consumer price inflation flat for August, up 0.5 percent from a year ago.

Commentary –

• Franc is up in line with the euro this week. Active call – sell pair targeting 0.92

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