Currency snapshot (major pairs)

Dollar index trading at 91.78 (-0.13%)

Strength meter (today so far) – Euro +0.07%, Franc +0.05%, Yen +0.20%, GBP -0.09%

Strength meter (since last week) – Euro -0.72%, Franc -1.69%, Yen -2.01%, GBP +0.71%

EUR/USD –

Trading at 1.198

Trend meter –

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

Support          

• Long term – 1.14, Medium term – 1.16, Short term – 1.175

Resistance –

• Long term – 1.22, Medium term – 1.22, Short term – 1.22

Economic release today –

• NIL

Commentary –

• The euro is going through a correction this week.

GBP/USD –

Trading at 1.328

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 (broken)

Economic release today –

• ILO unemployment rate declined to 4.3 percent in August.
• Average earnings up 2.1 percent both including and excluding bonus.

Commentary –

• The pound is the best performer of the week on inflation and rate hike speculation.

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 – 108.4

Resistance –

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

Economic release today –

• NIL

Commentary –

• The yen is the worst performer of the week, as safe haven demand fades. Active call – Buy yen targeting 101

USD/CHF –

Trading at 0.959

Trend meter –

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

Support –

• Long term – 0.90, Medium term – 0.92, Short term – 0.92

Resistance –

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

Economic release today –

• Producer and import price index up 0.3 percent in August, up 0.6 percent from a year ago.

Commentary –

• Franc is a much worse performer than the euro as safe haven demand fades. Active call – sell pair targeting 0.92

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