Currency snapshot (major pairs)

Dollar index trading at 91.74 (-0.33%)

Strength meter (today so far) – Euro +0.43%, Franc +0.26%, Yen -1.03%, GBP +1.46%

Strength meter (since last week) – Euro -0.53%, Franc -1.69%, Yen -2.94%, GBP +3.08%

EUR/USD –

Trading at 1.197

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 –

• July trade balance came at €23.2 billion.
• Labor cost rose 1.8 percent.

Commentary –

• The euro is going through a correction this week.

GBP/USD –

Trading at 1.36

Trend meter –

• Long term – Sell, Medium term – Buy, Short term – Buy

Support –

• Long term – 1.26, Medium term – 1.275, Short term – 1.293

Resistance –

• Long term – 1.345,(broken) Medium term – 1.32, Short term – 1.32 (broken)

Economic release today –

• NIL

Commentary –

• The pound is the best performer of the day and the week as BoE signals future rate hike and BoE dove Vlieghe talks of rate hike.

USD/JPY –           

Trading at 110.7

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 0.968

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 –

• SNB kept policy unchanged.

Commentary –

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

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