Currency snapshot (major pairs)

Dollar index trading at 91.25 (-0.31%)

Strength meter (today so far) – Euro +0.04%, Franc +0.18%, Yen +0.34%, GBP +0.67%

Strength meter (since last week) – Euro +1.73%, Franc +1.78%, Yen +2.27%, GBP +2.17%

EUR/USD –

Trading at 1.203

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 –

• 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 and a weaker dollar.

GBP/USD –

Trading at 1.32

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 (testing)

Economic release today –

• Consumer inflation expectation came at 2.8 percent.
• Industrial production up 0.2 percent in July, up 0.4 percent from a year ago.
• Manufacturing production up 0.5 percent in July, up 1.9 percent from a year ago.
• Trade balance came at £2.87 billion.

Commentary –

• The pound is moving higher on a weaker dollar.

USD/JPY –           

Trading at 107.9

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 this week so far over North Korea’s nuclear test and a weaker dollar. Active call – Buy yen targeting 101

USD/CHF –

Trading at 0.948

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 –

• The unemployment rate came at 3.2 percent in August.

Commentary –

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

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