Currency snapshot (major pairs)

Dollar index trading at 96.43 (+0.05%)

Strength meter (today so far) – Euro -0.05%, Franc -0.06%, Yen +0.17%, GBP -0.53%

Strength meter (since last week) – Euro +0.05%, Franc -0.38%, Yen -0.45%, GBP -0.65%

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 –

• NIL

Commentary –

• Euro is the best performer of the day. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01

GBP/USD –

Trading at 1.296

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 –

• Industrial production grew 1.6 percent from a year back. Manufacturing production grew 0.9 percent at 8:30 GMT.
• Goods trade balance for June came at -£12.41 billion.
• NIESR GDP estimate for July will be released at 14:00 GMT.

Commentary –

• The pound is the worst performer of the week. We expect the pound to reach parity.

USD/JPY –                      

Trading at 102.1

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 –

• Domestic corporate goods price index will be released at 23:50 GMT.

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 0.983

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 –

• Unemployment rate for July came at 3.3 percent.

Commentary –

• Franc is down this week as SNB intervention weighs. We expect Franc to strengthen against Dollar to as high as 0.86 area in the medium term.