Currency snapshot (major pairs)

Dollar index trading at 95.26 (+0.13%)

Strength meter (today so far) – Euro -0.21%, Franc -0.38%, Yen -0.04%, GBP +0.02%

Strength meter (since last week) – Euro +0.23%, Franc -0.07%, Yen +0.81%, GBP +0.88%

EUR/USD –

Trading at 1.119

Trend meter –

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

Support

• Long term – 1.06, Medium term – 1.08, Short term – 1.09            

Resistance –

• Long term – 1.16, Medium term – 1.143, Short term – 1.132

Economic release today –

• Markit services PMI rose to 52.9

Commentary –

• Euro is down today after a big gain yesterday. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01

GBP/USD –

Trading at 1.334

Trend meter –

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

Support –

• Long term – 1.2, Medium term – 1.27, Short term – 1.29           

Resistance –

• Long term – 1.39, Medium term – 1.35, Short term – 1.34

Economic release today –

• UK services PMI declined to 47.4 in July as post-referendum shock continues.

Commentary –

• The pond is the best performer of the week. Focus is on BoE tomorrow. We expect the pound to reach parity.

USD/JPY –                      

Trading at 101.1

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 –

• NIL

Commentary –

• Yen has gained this week on broad based weakness in the dollar. 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 0.97

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 the worst performer of the week. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.