Currency snapshot (major pairs)

Dollar index trading at 95.74 (+0.22%)

Strength meter (today so far) – Euro +0.09%, Franc -0.14%, Yen -0.72%, GBP -0.14%

Strength meter (since last week) – Euro +0.09%, Franc -0.14%, Yen -0.72%, GBP -0.14%

EUR/USD –

Trading at 1.108

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 –

• Sentix investor confidence rose to 4.2 in August from 1.7 in July.

Commentary –

• Euro is marginally higher today after big selloffs on Friday after NFP release. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01

GBP/USD –

Trading at 1.304

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 –

• BRC retail sales report for July will be released at 23:00 GMT.

Commentary –

• Pound is marginally down as risk aversion surrounds the pair. We expect the pound to reach parity.

USD/JPY –                      

Trading at 102.4

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 –

• Eco watchers survey outlook rose to 47.1 in July from prior 41.7 prior. Eco watchers survey current rose to 45.1 in July from 41.2 prior.

Commentary –

• The yen is the worst performer of the 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 0.981

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 –

• CPI for July came at -0.2 percent y/y.

Commentary –

• Franc is marginally down today. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.