Currency snapshot (major pairs)

Dollar index trading at 91.67 (-0.59%)

Strength meter (today so far) – Euro +0.80%, Franc +0.40%, Yen +0.36%, GBP +0.41%

Strength meter (since last week) – Euro +1.59%, Franc +1.07%, Yen +1.25%, GBP +1.29%

EUR/USD –

Trading at 1.205

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 –

• Second quarter GDP up 0.6 percent q/q, up 2.3 percent from a year ago.
• ECB kept monetary policy unchanged.

Commentary –

• The euro is higher on upbeat ECB

GBP/USD –

Trading at 1.31

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 –

• Halifax house price up 1.1 percent in August, up 2.6 percent from a year ago.

Commentary –

• The pound is moving higher on weaker dollar. Active call – Sell pound at 1.291 with target at 1.24

USD/JPY –           

Trading at 108.8

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 –

• Second quarter GDP number will be released at 23:50 GMT.

Commentary –

• The yen is up this week so far over North Korea’s nuclear test and weaker dollar Active call – Buy yen targeting 101

USD/CHF –

Trading at 0.952

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 –

• Forex reserve grew to 717 billion in July.

Commentary –

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

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