Currency snapshot (major pairs)

Dollar index trading at 97.12 (+0.23%)

Strength meter (today so far) – Euro -0.14%, Franc -0.10%, Yen -0.36%, GBP -1.04%

Strength meter (since last week) – Euro -0.15%, Franc -0.46%, Yen -1.46%, GBP -0.66%

EUR/USD –

Trading at 1.101

Trend meter –

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

Support

• Long term – 1.08, Medium term – 1.10, Short term – 1.10  

Resistance –

• Long term – 1.16, Medium term – 1.145, Short term – 1.12

Economic release today –

• European manufacturing PMI declined to 51.9
• Services PMI rose 52.9

Commentary –

• Euro testing support of 1.1 area. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01

GBP/USD –

Trading at 1.309

Trend meter –

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

Support –

• Long term – 1.2, Medium term – 1.25, Short term – 1.25 

Resistance –

• Long term – 1.5, Medium term – 1.38, Short term – 1.35

Economic release today –

• Flash manufacturing PMI declined to 49.1, 41-month low
• Flash services PMI declined to 47.4, 88-month low

Commentary –

• The pound is down sharply after PMI reports, worst performer of the day. We expect the pound to reach parity.

USD/JPY –                      

Trading at 106.2

Trend meter –

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

Support –

• Long term – 91, Medium term – 98, Short term – 100

Resistance –

• Long term – 111, Medium term – 107, Short term – 107

Economic release today –

• Nikkei flash manufacturing PMI rose to 49

Commentary –

• Yen is hovering around 106, focus on BoJ meet next week. Active call – Buy Yen @119.5 with stop loss around 123.8 and target at 114 and 110, 108.9 and 98.5. All targets reached, new target 90 added. Yen may retrace to 111 per dollar if BOJ intervenes.

USD/CHF –                        

Trading at 0.986

Trend meter –

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

Support –

• Long term – 0.9, Medium term – 0.927, Short term – 0.95

Resistance –

• Long term – 1.037, Medium term – 1.01, Short term – 0.994

Economic release today –

• NIL

Commentary –

• Franc is moving in line with the euro. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.