Currency snapshot (major pairs)

Dollar index trading at 96.10 (+0.10%).

Strength meter (today so far) - Euro -0.70%, Franc -0.45%, Yen +0.07%, GBP -0.17%

Strength meter (since last week) - Euro +0.34%, Franc +0.75%, Yen +0.48%, GBP -0.13%

EUR/USD -

Trading at 1.117

Trend meter -

• Long term - Buy, Medium term - Range, Short term - Range

Support

• Long term - 1.048-1.036, Medium term - 1.065-1.06, Short term - 1.08-1.085, Immediate - 1.109

Resistance -

• Long term - 1.175-1.18, Medium term - 1.15, Short term - 1.132

Economic release today -

• Euro area likely to dip into deflation in September. CPI reading -0.1%, as per flash estimate.
• Euro are unemployment rate at 11% for August.

Commentary -

• Dollar is strong across the board and pushed Euro below 1.12 as deflation in Euro area rose expectation that ECB might loosen policy further.

GBP/USD -

Trading at 1.512

Trend meter -

• Long term - Buy, Medium term - Range, Short term - Range

Support -

• Long term - 1.425-1.417, Medium term - 1.497-1.49, Short term - 1.518-1.512,

Resistance -

• Long term - 1.592-1.616, Medium term - 1.585, Short term - 1.572, Immediate - 1.524-1.526

Economic release today -

• Second quarter GDP came at 0.7% q/q and 2.4% y/y

Commentary -

• Pound is still the worst performer this week and likely to drop further. Active call - Sell Pound targeting 1.44 area with stop loss around 1.58 area.

USD/JPY -                      

Trading at 119.7

Trend meter -

• Long term - Buy, Medium term - Range/Buy, Short term - Range

Support -

• Long term - 113.7-112.9, Medium term - 116-115, Short term - 118.6

Resistance -

• Long term - 130, Medium term - 126, Short term - 121.7, Immediate - 120.5

Economic release today -

• Preliminary reading on industrial production for August to be released at 23:50 GMT along with details of retail sales.

Commentary -

• Yen is in triangular consolidation mode against Dollar, suggesting break out ahead. Active call - Sell USD/JPY targeting 114.7 area with stop loss around 122.

USD/CHF -                                                                                         

Trading at 0.975

Trend meter -

• Long term - Buy, Medium term - Range, Short term - Range/Buy

Support -

• Long term - 0.88, Medium term - 0.90, Short term - 0.93

Resistance -

• Long term - 1.174, Medium term - 1.025-1.02, Short term - 0.984-0.987

Economic release today -

• NIL

Commentary -

• SNB offers are likely given Franc's weakness today and correlation to Euro. Active Call - Buy USD/CHF with target around 1.03 area and stop around 0.95 area.