Currency snapshot (major pairs)

Dollar index trading at 95.18 (-0.25%)

Strength meter (today so far) – Euro +0.23%, Franc +0.22%, Yen -0.06%, GBP +0.82%

Strength meter (since last week) – Euro +0.18%, Franc -0.51%, Yen -0.57%, GBP +0.11%

EUR/USD –

Trading at 1.162

Trend meter –

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

Support          

• Long term – 1.10, Medium term – 1.12, Short term – 1.15

Resistance –

• Long term – 1.22, Medium term – 1.18, Short term – 1.18

Economic release today –

• Eurozone Services PMI unchanged at 54.4 in August.
• Retail sales up 1.1 percent y/y in July, down from 1.5 percent in June.

      Commentary –

• The euro is the best performer of the week as it recovered earlier loss against the USD. Active Call - Sell Euro at 1.218 with 1.17 as target; target revised lower to 1.095; Euro might correct towards 1.22 area

GBP/USD –

Trading at 1.296

Trend meter –

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

Support –

• Long term – 1.19, Medium term – 1.23, Short term – 1.27

Resistance –

• Long term – 1.35 Medium term – 1.32, Short term – 1.305

Economic release today –

• Services PMI rose to 54.3 in August from 53.5 prior.

Commentary –

• The pound is the best performer of the week on the possibility of a second Brexit referendum. Active call-  short term sell at 1.413 targeting 1.375 (target reached); extended to 1.354 (target reached); extended to 1.25

USD/JPY –           

Trading at 111.6

Trend meter -

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

Support –

• Long term – 104.2, Medium term – 106.2, Short term – 109.2

Resistance –

• Long term – 116, Medium term – 114, Short term – 112

Economic release today –

• Nikkei Services PMI rose to 51.5 in August.

Commentary –

• The yen remains trapped in bull/bear fight amid risk aversion and a strong dollar. The worst performer of this week on a strong dollar.

USD/CHF –

Trading at 0.972

Trend meter –

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

Support –

• Long term – 0.90, Medium term – 0.92, Short term – 0.95

Resistance –

• Long term – 1.03, Medium term – 1.00, Short term – 1.00

Economic release today –

• NIL

Commentary –

• Franc is much worse performer than the euro this week.